Startups > OppZo

OppZo

OppZo provides AI-powered working capital loans for government contractors.
Debt Financing $262M total Founded 2020 Miami, Florida 10 employees
OppZo provides AI-driven working capital loans for SMB government contractors, addressing the 120-day payment gap between contract execution and government reimbursement. The platform finances up to 20% of unbilled contract value ($100K-$1M+) at rates as low as 8% with no personal guarantees. OppZo digitizes traditionally manual lending processes through proprietary technology, serving an underserved market segment across 42 U.S. states.
Problem solved
Government contractors must pay employees and vendors immediately upon contract award but face 120-day payment delays from the government, requiring significant upfront mobilization capital.
Target customer
SMB government contractors with fixed-price federal contracts under $3M, particularly those in Opportunity Zones (economically-distressed areas)
Website LinkedIn Crunchbase
Founders
W
Warren Reed
CEO & Co-Founder
Former JPMorgan Executive in Wholesale Payments who co-founded an AI-driven data products group; appointed to U.S. Treasury under Obama Administration; derivatives trader at Barclays Capital and Lehman Brothers; B.S. Chemical Engineering (Columbia University), M.S. Data Science (NYU).
R
Randy Garrett
President & Co-Founder
Former government contractor with firsthand experience in the contracting challenges OppZo solves; relocated to Miami in 2020 to launch the company.
Funding history
Seed $2.05M February 12, 2021 Led by Unknown · Unknown
Series A $5M June 30, 2022 Led by Arcadia Funds · Unknown
Series A (Debt + Equity) $260M ($5M equity, $255M debt) June 30, 2022 Led by Arcadia Funds · H/L Ventures, Aspira Capital Management, Flori Ventures
Total raised: $262M
Industries
Small and Medium Businesses Financial Services FinTech
Pricing
Loan rates as low as 8% for terms up to 18 months; application fee of $260 charged after pre-qualification; no personal guarantees required.
Integrations
Arcadia Funds (capital alliance and co-investment partner); partner institutions for state-specific funding deployment
Website
oppzo.com/
Competitors
Taulia
Broader supply chain financing platform; less specialized in government contracting.
C2FO
Larger supply chain financing network; not focused exclusively on government contractors.
Kapitus
Traditional government contract lender without AI-driven platform; typically requires personal guarantees.
Hazel
Competitor in government contract lending space with less transparent pricing.
Kabbage
Broader small business lending platform not specialized in government contracts.
Why this matters: OppZo addresses a critical financing gap in the $150B government contracting market by combining fintech innovation with deep industry expertise. With $262M in funding and backing from Arcadia Funds, the company is scaling an underserved SMB segment that historically relied on expensive traditional lenders or personal credit.
Best for: SMB government contractors seeking affordable working capital to bridge payment gaps from federal contracts without personal guarantees or lengthy approval processes.
Use cases
Mobilization Capital for New Federal Contracts
A government contractor wins a $500K GSA Schedule contract but needs $75K immediately to hire staff and purchase equipment before government payment arrives in 90+ days. OppZo provides a $50K loan (10% of contract value) at 8-10% interest, enabling the contractor to fulfill the contract without depleting cash reserves.
Gap Financing for Contract Execution
A small defense contractor must pay subcontractors and vendors upfront for a $1M fixed-price contract. OppZo finances up to $200K (20% of contract value) in just days, allowing the contractor to meet vendor payment terms while awaiting government reimbursement.
Opportunity Zone Business Growth
A minority-owned government contracting firm in a designated Opportunity Zone expands operations with OppZo funding. The contractor benefits from favorable loan terms while the lender gains tax incentives, creating aligned incentives for growth in economically distressed areas.
Alternatives
Taulia Choose Taulia for broader supply chain financing; choose OppZo for specialized government contract expertise and lower rates.
C2FO Choose C2FO for large supply chain networks; choose OppZo for government contractors seeking fast, personalized underwriting.
Traditional Bank Lines of Credit Choose traditional banks for long-term borrowing; choose OppZo for fast, contract-specific working capital without personal guarantees.
FAQ
What does OppZo do? +
OppZo provides AI-powered working capital loans to SMB government contractors to finance the gap between contract execution and government payment (typically 90-120 days). Loans range from $100K to $1M+ based on up to 20% of unbilled government contract value, with rates as low as 8% and no personal guarantees required.
How much does OppZo cost? +
Loan rates start as low as 8% for terms up to 18 months. There is a $260 application fee, but this is only charged after pre-qualification. Exact rates depend on contract value, contractor credit profile, and other underwriting factors.
What are alternatives to OppZo? +
Alternatives include Taulia and C2FO (broader supply chain financing platforms), Kapitus and Hazel (traditional government contract lenders), or traditional bank lines of credit. OppZo differentiates through AI-driven underwriting, no personal guarantees, and specialization in government contracts.
Who uses OppZo? +
SMB government contractors with fixed-price federal contracts under $3M, particularly those in economically-distressed Opportunity Zones. As of July 2022, OppZo had a small group of early users plus a pipeline of thousands of contractors. Notable team members include Kysha Pierre-Louis (former president of government contract lending at $9B White Oak fund).
Where does OppZo operate? +
OppZo operates in 42 U.S. states, excluding California, Nevada, New York, North Dakota, South Dakota, Utah, Vermont, and Wisconsin. Funding may be issued by OppZo or partner institutions depending on state regulations.
How does OppZo compare to traditional government contract lenders? +
OppZo uses proprietary AI to digitalize traditionally manual underwriting processes, offering faster decisions and lower rates (from 8%). Unlike competitors, OppZo requires no personal guarantees and focuses on Opportunity Zone businesses, creating a more accessible lending option for underserved SMBs.
Tags
government contracts working capital SMB lending working capital finance AI underwriting contract financing no personal guarantees