Small business marketplace lender P2Binvestor announced $7.7 million in new funding, courtesy of a Series A round led by Rockies Venture Club (RVC). Also participating in the Series A was Japanese venture capital firm, Future Venture Capital Co. (FVC). The investment in P2Binvestor was FVC’s first direct investment outside Japan.
P2Binvestor founder and CEO Krista Morgan said that her company was filling a significant niche for SMEs seeking financing to grow. “We’re seeing more interest in our model as venture funding hits a two-year low and more entrepreneurs are looking for ways to grow their business—while preserving their equity—by using good-quality, flexible debt,” Morgan said. She added that the new capital will be invested in technology as well as sales and marketing “as we scale to meet market demand.”
P2Binvestor founder and CEO Krista Morgan demoed her company’s technology at FinovateFall 2014.
Headquartered in Denver, Colorado, and founded in 2012, P2Binvestor demonstrated its new borrower app and loan-management dashboard at FinovateFall 2014. The company specializes in providing asset-backed lines of credit, using the crowdlending format to connect both accredited and institutional investors with small businesses needing funding, and using the latest in technology to streamline the underwriting process and provide due diligence for investors. In September, P2Binvestor won the finance and banking PowerBook award from the Denver Business Journal, and extended a $10 million credit facility with Urban Settlement Solutions.
P2Binvestor has funded more than $350 million in revolving credit to more than 80 SME borrowers since the spring of 2014. The company hopes its crowd of 150 accredited retail and institutional investors will help P2Binvestor fund an additional 112 new borrowers by March 2017. P2Binvestor anticipates more than $8 million in revenue this year and expects to be cash-flow positive in 2017. The company’s average line of credit is $1 million.