Imagine you’re trying to buy a small business. You’ve found the perfect fit, lined up an SBA loan, and are ready to move fast. But then—valuation limbo. You’re stuck waiting two to three weeks and paying up to $5,000 just to get a business appraisal. It’s slow, expensive, and frustrating.
Now imagine getting that same report in under three days—for less than half the cost.
That’s the promise behind ValueBuddy, a fast-growing fintech startup using AI to modernize small business valuations. In our latest Ignite Startups podcast, we sat down with Cameron Long, the company’s co-founder and COO, to unpack how they’re reshaping a legacy industry—and why SBA lending was the perfect wedge to start with.
This post captures the key insights and themes from that conversation for those who prefer to read over listening.
🧠 The Problem: Legacy Valuations Are Broken
Small business valuations are typically done manually, often relying on Excel models and weeks of analyst time. It’s a slow and inconsistent process, built for a pre-digital world. Cameron and his co-founder Ace encountered this firsthand while working in financial roles—Ace at Brown-Forman, and Cameron in consulting and private equity.
Despite the rise of tech-enabled tools in other financial sectors, business valuations—especially for SBA loans—remained stuck in the past.
🚀 The Wedge: SBA Lending
So why start with SBA loans? Cameron explains that these loans, backed by the U.S. Small Business Administration, require an independent business valuation to right-size the loan amount and mitigate risk.
It turns out that:
The valuation is required by law
Lenders are under pressure to close deals quickly
Many legacy providers charge $5K+ and take 2–3 weeks
This created the perfect storm for disruption—and a clear wedge into the market.
⚙️ The Solution: AI-Powered, Human-Certified Valuations
ValueBuddy uses multiple layers of AI to streamline the process:
Computer Vision for financial document processing (a.k.a. financial spreading)
Retrieval-Augmented Generation (RAG) to enable lenders to interact with 60-page reports via natural language queries
Dynamic modeling using precedent transaction data, seller’s discretionary earnings (SDE), and discounted cash flows (DCF)
Critically, ValueBuddy still includes a human in the loop—an experienced valuation director who reviews and certifies every report. This blend of automation and expertise ensures compliance, accuracy, and trust.
📊 Market Size & Expansion Strategy
ValueBuddy is tackling a $100M segment of the $4B valuation market with SBA lending alone. But that’s just the beginning.
From there, they plan to expand into:
Conventional lending with the same tools
Business brokers supporting sellers with accurate pricing
Full underwriting tools across loan origination workflows
Their long-term vision is to become a central infrastructure layer for small business lending.
💡 Insights for Founders & Investors
Here are a few takeaways Cameron shared that every early-stage founder should hear:
Pre-seed rounds now require real traction, not just an idea. ValueBuddy didn’t raise real capital until they had paying customers.
Accelerators can help—but only if they’re industry-specific or offer brand credibility.
Personal branding matters. Bankers will check your LinkedIn. Build credibility where your customers are looking.
Focus on account penetration. Expanding within a single bank is more efficient than chasing new logos.
🔮 What’s Next?
Looking ahead, ValueBuddy plans to deepen its relationships with SBA lenders and expand into conventional loan valuations. Their platform is also primed to layer on additional underwriting tools—making them indispensable to banks serving the small business market.
They’re not just speeding up appraisals. They’re laying the foundation to reimagine how risk is evaluated, priced, and managed across a massive part of the U.S. economy.
👂🎧 Watch, listen, and follow on your favorite platform: https://tr.ee/S2ayrbx_fL
🙏 Join the conversation on your favorite social network: https://linktr.ee/theignitepodcast
Chapters:
Welcome & Guest Introduction (00:01 – 00:38)
Cameron’s Journey from Consulting to Founding ValueBuddy (00:39 – 01:43)
Spotting the Pain Point: Manual Valuations at Scale (01:44 – 03:28)
Why SBA Lending Became the Core Focus (03:29 – 05:34)
Legacy Valuations vs. ValueBuddy’s Model (05:35 – 06:50)
Why This Wasn’t Built 10 Years Ago (06:51 – 09:08)
Pricing, Volume, and Closing Time: The Banker’s POV (09:09 – 10:48)
Why Time Matters More Than Money (10:49 – 11:31)
Consulting Frameworks Applied to Startups (11:32 – 12:10)
Market Sizing & the $4B Opportunity (12:11 – 13:28)
Expanding Beyond SBA Loans (13:29 – 14:21)
Helping Sellers Price with Confidence (14:22 – 15:07)
Public vs. Private Valuation Models (15:08 – 16:29)
Risk, Discount Rates, and Lending Dynamics (16:30 – 17:18)
Size Matters: Key Drivers of Valuation Multiples (17:19 – 18:30)
How the AI-Powered Modeling Works (18:31 – 20:06)
Comps, Market Approach, and Real Estate Parallels (20:07 – 21:06)
Using AI Beyond ChatGPT—RAG & Computer Vision (21:07 – 23:38)
Enabling Better Customer Support Through AI (23:39 – 24:35)
Human-in-the-Loop: Blending AI with Expertise (24:36 – 25:11)
Top Misconceptions Around AI in Lending (25:12 – 25:58)
Why Switching from Legacy Providers Is Surprisingly Easy (25:59 – 26:50)
Lessons from Raising Fintech Capital (26:51 – 28:33)
When Accelerators Work—and When They Don’t (28:34 – 29:48)
Building Credibility Through Personal Branding (29:49 – 31:08)
The Long Game: ValueBuddy’s 10-Year Vision (31:09 – 31:56)
The J-Curve & Working Capital Mistakes (31:57 – 32:44)
Fintech Book, KPI, and Market Trends (32:45 – 34:40)
Bold Predictions & Policy Changes That Matter (34:41 – 35:18)
Share this post