Fintech Firm Newity Raises $11M to Build Blockchain Lending Platform

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Fintech firm Newity has secured $11 million in a strategic funding round led by CMT Digital, marking a significant step towards bringing blockchain technology to the small business lending market. Newity aims to bridge the $350 billion annual funding shortfall faced by small businesses by combining AI-powered underwriting with blockchain-ready capital market infrastructure.

Why it matters

Small businesses are the backbone of the U.S. economy, representing 99.9% of all firms and employing nearly half the nation's workforce. Yet, they face a staggering $350 billion annual funding shortfall. Newity's blockchain-enabled lending platform has the potential to improve liquidity, transparency, and efficiency in the small business financing process, creating new ways to support entrepreneurs.

The details

Newity's AI-first underwriting platform analyzes hundreds of data points to deliver a prequalified loan estimate in under 10 minutes, with funding available in as little as 21 days. The company partners with banks like Northeast Bank to originate and approve loans, with an average loan size of around $118,800 and access up to $350,000. The $11 million investment will fuel Newity's plans to scale its AI underwriting and build infrastructure to connect small business credit with blockchain-enabled capital markets, transforming illiquid small business debt into digital, tradable instruments.

• Newity has already facilitated over $12 billion in financing for more than 125,000 businesses.

What’s next

Newity expects to announce its specific blockchain strategy in the near future.