The startup investment market can be a bit of a minefield, with no verified vetting system for investors to identify promising startups – or for startups to make sure the investors are reliable sources of capital.

But two companies have just teamed up to use data to speed up the vetting and verification process on both sides of the fence.

AllianceBlock is aiming to bridge the gap between decentralised and traditional finance and has joined forces with artificial intelligence (AI) player Graypes GmbH to create a Fast Track to Investment (FTI) service to evaluate businesses using algorithms and AI.

It will also allow startups to be micro/seed-funded quickly, helping to provide swift and reliable investment.

The service will target retail and professional investors and will be based on top rated businesses with a focus on technology like Fintech, PropTech and SaaS.

Data driven due diligence for investors

AllianceBlock CEO and co-founder Rachid Ajaja says the FTI service will facilitate data driven due diligence at record speeds, increasing confidence among investors and startups.

“The finance industry is still lacking a verified vetting system to allow investors to identify and invest in promising startups,” he said.

“Recent interest amongst leading institutional players is a testament to the demand for integrated products like these, where costs and time are vastly reduced without compromising on proper due diligence.”

Startups get access to reliable funding

Plus, startups will benefit from the due diligence with increased capital flows from reputable industry investors.

“Many startups face issues with accessing capital from reliable sources,” Ajaja said.

“Our new partnership with Graypes will create a unique, verifiable, and trustworthy funding ecosystem that increases capital flows between investors and startups through data-driven verification.”

Graypes CEO and founder Federico Carrasco said the FTI services will “provide investment capital to businesses while reducing time spent on assessment and funding in a decentralised environment.”

An integrated financial sector could be a reality

In addition to FTI, AllianceBlock will integrate Graypes’ leading business rating technology and company assessment mechanisms into its decentralised peer-to-peer funding protocol, AllianceBlock Fundrs.

This will enable smarter investment, lending, and borrowing in the decentralised finance space.

In return, Graypes will gain access to the Fundrs platform, enhancing their ability to support their existing network of entrepreneurs.

Ajaja said the company sees the future of finance as an integrated system in which the best of both worlds can work together to increase capital flows and technological innovation – and the partnership is a step closer to this reality.

“By integrating Graypes solutions with AllianceBlock Fundrs, we have created an invaluable opportunity for investors to optimise decision making across the board and make data driven decisions about projects,” he said.