Founder in Focus: Denise Thomas, CEO and Co-Founder of ApplePie Capital

This week’s [co]founder in focus is Denise Thomas, CEO and co-founder of ApplePie Capital. ApplePie Capital (Fund II) is a marketplace lender that enables franchisees to get new and more efficient sources of capital for their business.

Denise says the idea for ApplePie Capital came about as banks became more regulated and began pulling out of a lot of smaller loan financing. Most banks only do SBA loans for people who want to build out a franchise — Proforma. They’re heavily focused on financing cash flow loans. And the franchise brands make more money when they open new units; it’s key to their hearts and wallets.

Another key is obtaining proprietary data. Denise observed 33% of all loans that defaulted in SBA programs came down to 10 out of 3,800 brands. She knew she could build a data-driven underwriting model that would be consistent in targeting brands to serve. The industry is huge, and Denise knew she could build finance-in-a-box for businesses in a box. Franchise is data-driven and all about consistency.

Early on, Denise received key advice worth heeding. She asked an early stage equity investor how to measure her success for the first 12 to 18 months. He said, “When you start out, you usually have 5 or more big obstacles to overcome in a new venture. If you can get it down to one problem in a year, you are going to do well.” Other advice that’s served her well: Choose your board members wisely, and don’t allow a major capital…