Dave Girouard -  Disrupting Credit Underwriting

Dave Girouard stops by The Business Brew to discuss how Upstart is attempting to change the way credit is underwritten.  Upstart uses machine learning and artificial intelligence to expand loan underwriting beyond FICO scores.  The company’s goal is to make the underwriting process more efficient; creating a win-win for consumers and lenders.

Dave also talks about Upstart’s early struggles, what artificial intelligence actually does, how First Round Capital stepped up when Upstart really needed them to, and much more. We hope you enjoy the conversation.

Thank you for joining the show Dave!

We will be on break for 1-2 months following this show.  “See” you in April/May.

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Album art photo taken by Mike Ando.  Please see https://www.mikeando.com/

Thank you to @mathewpassy (on Twitter) for the show production.

Detailed Show Notes

2:15 – Intro to Dave

7:40 – The problem Upstart is looking to solve

12:45 – What will machine learning do for the world?

16:35 – Dave’s history at Google

19:33 – Upstart’s history as a company

22:21 – Upstart’s financing problem as a young company – Shoutout to First Round Capital!

27:15 – Who held the credit risk when Upstart’s loans were first funded

30:45 – Upstart’s relationship with Cross River Bank

37:15 – How Dave thinks about operating for growth vs. profits

40:42 – The right team is necessary

47:53 – Running Upstart through COVID and remotely

55:45 – How does Dave thinks about Share Based Comp

58:46 – What it’s like to manage when a stock is super volatile

1:02:00 – Will Upstart begin to hold credit risk?  Hint: No.