The Miami-based startup aims to connect small businesses to public and private funding opportunities with the ultimate goal of creating jobs.
By Riley Kaminer
Globally, government procurement comprises upwards of $10 trillion each year. This presents a huge opportunity for small- and medium-sized businesses. In the US alone, our federal government has earmarked 23% of all contracts to SMEs.
One major barrier preventing SMEs from taking advantage of these lucrative opportunities is access to capital. But Miami-based startup OppZo can help. The fintech provides between $100,000 and $1 million in funding to SMEs, with rates as low as 8% and no personal guarantee. To accomplish this mission, they have developed an AI-powered servicing platform.
OppZo announced on Thursday that the company has raised $260 million to further their efforts. Of these funds, $5 million is equity financing, while the remaining $255 million is debt funding. This round was led by Arcadia Funds.
“We built OppZo with one mission in mind: to help build thriving communities,” Warren Reed, OppZo’s co-founder and CEO, said in a statement.
“Every business owner needs access to capital on terms that are fair and affordable,” Reed continued. “We understand first hand the impacts of disparity in funding, and we’re delivering the optimal solution to the market.” Before founding OppZo, Reed worked in the US Department of the Treasury and as an executive at JPMorgan.
Through this fundraise, OppZo is effectively providing capital from institutional investors to SMEs. On the flip side, they are offering institutional investors with a new impact asset class that carries what it describes as “an attractive risk-adjusted return that has a positive and sustainable social and economic impact on the funded communities.”
Despite the long sales cycle involved with public procurement, government contracts are widely known to be more reliable long-term. Federal contracting also has the potential of increasing equity in small businesses at scale – something that the current presidential administration has underscored. This fundraise is timely, with a rapidly rising increase in impact investing, to the tune of 42.5% yearly growth.
“Our top priority is supporting the communities we serve and seeing them thrive,” commented Randy Garrett, co-founder and president. “We are building an ecosystem that drives both public and private capital to businesses in these distressed communities, and we do so by focusing on building relationships and understanding first.”
With 52 million Americans living in economically distressed communities, economic development is a key focus of OppZo. The startup, which was founded in 2020, aspires to connect small businesses to public and private funding opportunities with the ultimate goal of creating jobs.
“OppZo is solving the conundrum the financial services industry has long faced: how do we pursue impact without sacrificing a sustainable business model?” said Andrew Hallowell, Managing Director at Arcadia Funds, LLC, expressing excitement about the economic development aspect and impact potential of the startup.
While the global public-purpose tech industry is still in its infancy, experts argue that it has reached a tipping point, citing the increased adoption of technology that addresses big public needs. In this world, South Florida is a rising star, with rapidly growing scaleups such as GovSpend and startups such as GovLia.
PHOTOS AT TOP OF POST: OppZo co-founders Warren Reed, CEO (left), and Randy Garrett, President (right). This story may be updated.
READ MORE ON REFRESH MIAMI:
- GovLia launches Academy to further mission of helping small businesses sell to the government
- How can businesses of all sizes sell to the government? GovSpend’s Jack Siney explains
- General Catalyst launches civic tech vertical, chooses Miami as HQ
- Comp AI turns compliance headaches into a $34M Series A - September 17, 2026
- Zèya zooms past 100,000 downloads, sets its sights on the next million - September 16, 2026
- Grip is taking the guesswork out of shipping the cold stuff - September 15, 2026