Theorem
Theorem, formerly known as Algorithmic Lending and Theorem LP, is a fintech company based in San Francisco, specializing in asset management and the underwriting of consumer loans.
Company History
Theorem, originally known as Algorithmic Lending and later Theorem LP, is a fintech company based in San Francisco, CA. Since its inception, Theorem has focused on leveraging technology to enhance the credit ecosystem. The company became part of the Y-Combinator W14 batch, marking its entry into the competitive space of fintech innovation. It has been on a mission to make credit safe and available since 2014, and has powered billions in lending through its funding network.
Industry and Sub-Industry
Theorem operates in the fintech industry, specifically within the sub-industry of asset management. The company focuses on independent underwriting of consumer loans originated by various financial entities such as banks and credit card companies. Its efforts are targeted towards managing institutional capital and securitizing loans, thus providing advanced solutions to both lenders and investors.
Services
Theorem offers a range of services designed to enhance loan origination and securitization. Key services include Custom Loan Integration Programs (CLIP) that help sustainably increase origination volume, and Securitization as a Service (SaaS), which packages loans into credit products for investors. The company has also introduced Theorem Loan Score (TLS), a machine-learning driven evaluation to assess loan default risk. Real-time loan scoring via API and portfolio surveillance to offer a consistent view of risk across a portfolio are other pivotal services provided by the company.
Technology and Innovation
Theorem utilizes cutting-edge machine learning technology in its credit underwriting processes. The Theorem Loan Score (TLS) is a central component of this technology, providing a machine-learning driven evaluation to assess default risk. The company focuses on offering a consistent risk lens across all loans in its network, regardless of origin. Additionally, their services are designed to integrate seamlessly with existing underwriting flows, allowing for real-time loan scoring and efficient risk assessment.
Locations and Team
Theorem is headquartered in San Francisco, CA, and operates across multiple regions, including the United States, Canada, and various remote locations. The company's team consists of 34 members who collaborate partly remotely, reflecting modern flexible working arrangements. The diverse and skilled team supports the company's mission to make credit safe and available through innovative fintech solutions.