Debt restructuring platform LendStreet added $117 million in combined debt and equity to its funding total this week. Of that amount, $7 million is equity and $110 million is debt. Today’s influx brings the California-based company’s total combined financing to $149 million, comprised of $39 million in equity and $110 million in debt.
The $7 million Series A equity investment was led by Prudential Financial and Radicle Impact, with participation from existing investors Accion, the Center for Financial Services Innovation (CFSI), Serious Change, Crunchfund, Kapor Capital, and Cross Culture Ventures. The debt portion comes from Prudential and Community Investment Management.
Jerry Nemorin, founder and CEO of LendStreet discussed the company’s plans for the financing in a blog post, saying, “These investments will enable us to scale our platform and reach more consumers who are struggling with too much debt.” Nemorin added, “Prudential, CIM, Radicle Impact, and our other investors share our vision of finally giving mainstream Americans access to an equitable and transparent alternative for their mounting credit card debt.”
Founded in 2010, LendStreet helps consumers and small businesses consolidate, restructure, and refinance debt. The company helps borrowers in distress and negotiates their old debt with their previous creditor for a lower monthly payment amount and lower interest rate. These debts are restructured as a loan, funded by accredited investors on the LendStreet platform, who buy a share of each loan. After the borrower’s new monthly payment plan is organized, LendStreet sets them up with educational tools and resources to help them rebuild their credit and take control of their finances.
“The LendStreet platform provides a solutions-based user experience for consumers under financial stress,” said Tom Coombs, Co-Founder and Vice President of Product Development at LendStreet. “Understanding your options to pay down debt and rebuild your credit is not easy. LendStreet is giving overbanked consumers a more manageable, transparent and sustained path to restructuring debt and improving their financial health.”
Miljana Vujosevic, Vice President of Impact Investments, as well as Catha Groot, Principal at Radicle, will join R. Jerry Nemorin, Michael Snyder, and KG Charles-Harris on LendStreet’s Board of Advisors.
Since launching in 2013, LendStreet has helped customers reduce their debt by almost 40% and improve their credit score by an average of 100 points. At FinovateSpring 2011, Nemorin debuted the LendStreet platform on stage with Jason Mars, who has since transitioned to become the founder and CEO of Clinc, which first appeared on the Finovate stage in 2016. Earlier this year, LendStreet earned its its place on the Tech Tribune’s list of the 10 best startups in Oakland.
