Small businesses remain the backbone of the U.S. economy, generating nearly half of the nation’s GDP and employing millions of Americans. Yet despite their vital role, many entrepreneurs continue to face barriers to growth — particularly when it comes to accessing capital. The culprit is often the same: inadequate financial management and poor visibility into their own financial data.
To bridge that gap, Bags, a financial technology company that helps small businesses organize and optimize their financial operations, is redefining how entrepreneurs manage, understand, and grow their businesses.
Backed by the Ford Foundation, Bags transforms QuickBooks data into actionable insights that enable small businesses to unlock growth, access fair credit, and scale sustainably.
Addressing the Hidden Barrier: Messy Books
For many small businesses, missed expenses, disorganized records, and incomplete financial documentation can severely limit their ability to get funded or attract investors. After working with more than 10,000 small businesses, Bags has found that the majority are fundamentally strong — but their financial books don’t accurately reflect their true health, costing them valuable opportunities.
That’s where Bags steps in.
Founded in 2020 by Daniel Taylor, William Hayden, and Ignacio Semerene, Bags combines AI-driven financial reviews, CFO-level reporting, and expert human guidance to help small business owners strengthen their financial foundation and secure the funding they deserve.
“We’re changing the way small businesses think about money,” said Daniel Taylor, CEO and co-founder of Bags. “By combining AI financial reviews, CFO-level reporting, and access to over $10 billion in available credit, we help entrepreneurs become stronger operators and grow their businesses with confidence.”
AI + Human Expertise = Real Results
The impact has been measurable. Businesses using Bags grow an average of 250% year over year, are 4.5 times more likely to receive funding, and secure financing five times faster than the national average.
Unlike traditional bookkeeping or fractional CFO services, which can cost anywhere from $10,000 to $20,000 per month, Bags delivers the same level of precision and strategic insight at a fraction of the cost.
The platform begins with a free AI-powered financial review, analyzing QuickBooks data to identify errors, explain the root causes, and recommend actionable solutions. This service helps entrepreneurs immediately understand where their books are falling short — and how to fix them before seeking funding.
$2.75 Million Round Led by Ford Foundation
Bags’ latest milestone is a $2.75 million investment round led by the Ford Foundation, with participation from Partnership Fund for New York City, Zeal Capital Partners, Slauson & Co, Limited Ventures, and Blueprint FTC. The round brings Bags’ total capital raised to $7 million, joining a growing roster of backers that includes Connecticut Innovations, Howard Schultz Family Foundation, and Swanston Labs.
“Well-informed financial management is the key to making prudent decisions and unlocking access to growth-enabling credit for small businesses,” said Roy Swan of the Ford Foundation. “We’re pleased to support the Bags team as they expand their impact across the U.S.”
“By equipping small businesses with better financial management tools, guidance, and access to debt capital, Bags is helping a critical part of our economy remain competitive and financially resilient,” added Maria Gotsch, President and CEO of the Partnership Fund for New York City.
Expanding Partnerships with Mission-Driven Lenders
With the new funding, Bags plans to enhance its AI product capabilities and expand partnerships with mission-driven lenders and Community Development Financial Institutions (CDFIs) — organizations focused on empowering underrepresented entrepreneurs.
Following its recent partnership with TruFund Financial Services, Bags is preparing additional CDFI and Minority Depository Institution (MDI) pilots in 2026. These initiatives aim to modernize the loan preparation and funding process, giving both borrowers and lenders real-time visibility into financial performance.
Building a Fairer Financial Future for Entrepreneurs
At its core, Bags envisions a future where small businesses are no longer underfunded or overwhelmed by financial systems that weren’t built for them. By pairing intelligent automation with expert guidance, the company is helping entrepreneurs focus less on administrative complexity and more on sustainable growth.
“Our vision is simple,” said Taylor. “We want every small business to have clean books, understand what those books say, and be truly ready to grow because of it.”