Fundera Raises $11.5 Million
NEW YORK–(BUSINESS WIRE)–Fundera, the online credit marketplace for small businesses, today announced an $11.5 million Series B funding round led by Susquehanna Growth Equity with participation from previous investors including QED Investors, Khosla Ventures and First Round Capital, bringing the company’s total funding to date to $15 million.
Since the most recent financial crisis, small business owners have been underserved by traditional banks with small business loans down from their pre-recession high. As a result, they have been forced to turn to online lenders to find the capital they need to grow. The majority of small business loans originated by online lenders are sourced through predatory offline loan brokers who engage in deceptive practices and take exorbitant fees to market certain lenders over others, driving up the cost of loans to borrowers. This unethical behavior takes advantage of small business owners, often putting them into loans that they do not fully understand or cannot reasonably repay.
America’s small business owners deserve better. Fundera was created to disrupt the loan broker ecosystem and make the process of getting a small business loan as transparent, fair and accountable as possible. Fundera utilizes software to create a seamless common application which enables borrowers to apply to multiple pre-screened lenders in a matter of minutes, clearly presenting funding options while encouraging competition among lenders. Fundera’s customer success team acts as an impartial advocate on behalf of borrowers and the company produces content to educate and allow borrowers to make informed financing decisions. Additionally, this past August, Fundera helped lead the creation of a Small Business Borrowers’ Bill of Rights that brought together a coalition of major industry players with the goal of eliminating predatory lending, and which is quickly becoming the gold standard for fairness in online lending.
Fundera will use this latest round of funding to accelerate its mission of making small business lending more transparent and helping small business owners grow through the responsible use of credit. The company plans to expand its team of dedicated loan specialists and engineers, develop and refine its borrower experience, and continue to build new products that help empower borrowers to choose the best loan for their business.
“Everyday throughout America small businesses which represent the lifeblood of our economy are being taken advantage of by online lenders and brokers,” said Fundera founder and CEO, Jared Hecht. “By creating a transparent marketplace that lays out a small business owners’ loan options and empowers them with tools to choose the best option for their business, Fundera is revolutionizing how small business owners access credit while creating a software solution that is disrupting the loan broker industry.”
Susquehanna Growth Equity shares the company’s passion for empowering consumers and affecting structural changes in the financial space. Scott Feldman, Managing Director at Susquehanna Growth Equity and newly appointed member of Fundera’s Board of Directors, echoes this sentiment: “At Susquehanna, we look for holistic teams that demonstrate true passion for their mission. As early investors in Credit Karma, we understand the Fundera model and have experience in helping companies transform areas of credit and financial services that empower consumers to win.”
Small business credit is one of the few industries where the Internet has had minimal impact when it comes to empowering borrowers and providing them the buying power they need to come out on top, and Fundera is bringing that change to small businesses nation-wide.
Fundera launched in February 2014 and has established itself as the most-trusted online marketplace for small business owners. To date, Fundera has helped secure over $60 million in credit to more than 1,200 small business owners across the country in industries including retail, restaurants, and creative contractors. The company is based in New York City.
Fundera is the most-trusted online marketplace that connects small business owners with the best funding providers for their businesses by working with prescreened lenders to assemble the highest quality funding sources. Fundera was co-founded in 2013 by GroupMe co-founder Jared Hecht and successful software entrepreneur Rohan Deshpande to bring transparency, accountability, and fairness to the online lending industry at large. The company has raised $15 million from Susquehanna Growth Equity, QED Investors, Khosla Ventures, First Round Capital, Lerer Ventures, SV Angel, and angel investors Aaron Levie, Scott Belsky, Strauss Zelnick, Rob Wiesenthal, David Rosenblatt and David Tisch, and is based in New York City. To learn more or get started on a loan application, please visit www.fundera.com.
About Susquehanna Growth Equity
Susquehanna Growth Equity, LLC (SGE) invests in growth stage technology companies in the software, information services, internet and financial technology sectors. The firm is backed by a unique and patient capital base that allows management teams the freedom and flexibility to maximize growth. Notable prior investments in marketplace companies include CreditKarma (financial management platform with 40 million members), BStock Solutions (overstock inventory liquidation marketplace) and Globaltranz (marketplace for transportation services). To learn more, please visit us at www.sgep.com.
Brew Media Relations
Ashley Hopkins, 646-517-7544