- NerdWallet looks at Kabbage and LendUp as innovators in combining social media and lending.
- Westlake Financial Services to deploy billpay solution from ACI Worldwide.
- Bluefin Payment Systems partners with PCI University to provide PCI compliance education suite to Bluefin’s merchant base.
- P2P Banking highlights Society One’s role in Australian P2P lending.
- PaySimple now powers the payments, scheduling and reporting services for RainMaker, a membership management solution for martial arts schools.
- Finovate Debuts: Yoyo is More than Just a Mobile Wallet.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
For all the innovations in the ways alternative lenders connect borrowers with capital, it’s nice to see a little innovation on the side of lenders getting their money back.
announced this morning that it had inked two service arrangements with global money transfer and payments company, MoneyGram. The partnership will let LendUp borrowers use MoneyGram’s Express Payment Service to repay their loans. The service is available at 39,000 agent locations across the United States.
The goals, said LendUp CEO and co-founder, Sasha Orloff, was to provide “new payment options exactly where many of our customers prefer to do business.” In a statement, LendUp shared research that indicated that among “small dollar credit” consumers, “store location convenience” was a major factor.
Echoing this fact was MoneyGram’s executive vice president of U.S. and Canada, Pete Ohser, who highlighted both innovation and convenience in celebrating the new relationship with LendUp.
And “new relationship” sounds like the proper way to think of LendUp and Moneygram going forward. Rather than a one-off deal, LendUp sees its relationship with MoneyGram growing to include additional products and services enabling access to credit via LendUp. Payment services are also under consideration going forward.
Founded in 2011, LendUp is based in San Francisco, California. The company demoed its RESTful API platform at FinovateSpring 2014 in San Jose
, having won Best of Show honors the previous year at FinovateSpring 2013 in San Francisco. LendUp also made headlines in May with news that the company had raised a $50 million credit facility
thanks to Victory Park Capital.
With so many venture capitalists throwing money at alternative lenders in recent days, is it any surprise that they’ve begun hurling credit cards at these innovators, as well?
LendUp announced today that it has raised a $50 million credit facility from Victory Park Capital. This comes just a few months after picking up $14 million from Google Ventures and QED Investors in November.
LendUp co-founder Sasha Orloff credits rapid growth for the fresh funding needs of his company. He points to month-over-month growth between 10-20%, as well as expansion
into Louisiana, Mississippi, Missouri, Oklahoma, and Tennessee as evidence that LendUp will make good on its goal of launching in a new state every two weeks, and originating 300,000 loans this year.
A pioneer in socially responsible lending, LendUp provides a source of money for those typically unable to borrow through banks and credit unions. LendUp combines financial education, gamification, and better loan terms than those typically offered by traditional non-bank lenders to build a business that serves rather than avoids non-prime borrowers.
LendUp was founded in 2011, and launched its platform a year later. The company was part of FinovateSpring 2014 in San Jose, California, where they demoed their technology. Video of LendUp’s demo will be available soon.
This post is part of our live coverage of FinovateSpring 2014.
Our next presenter is LendUp. The socially-responsible lender has earned investment from sources ranging from Google Ventures to Kleiner Perkins.
“LendUp is proud to enable partners to leverage the first RESTful API Lending Platform. We have exposed the same core platform that has built and launched LendUp’s diverse suite of consumer lending products and channels – a fully compliant mobile, web, or custom integration for consumer lending with a focus on market solutions to subprime or payday lending.”
Presenting: Sasha Orloff (CEO & Co-Founder) and Jacob Rosenberg (CTO & Co-Founder)
Product Launch: FinovateSpring 2014
Metrics: $20 million raised from Y-Combinator, Google Ventures, QED Investors, Data Collective, Andreessen Horowitz, Kleiner Perkins, Kapor Capital, Thomvest Ventures, SV Angel & Startfund
Product distribution strategy: Direct to Consumer (B2C), Direct to Business (B2B), through financial institutions, through other fintech companies and platforms, licensed.
HQ: San Francisco, California
Founded: November 2011
It is hard to believe that it is almost time for FinovateSpring 2014.
There’s still plenty of time for you to get your tickets to our upcoming event in San Jose, California on April 29 and 30. Our final Sneak Peek preview post is up, all the companies who were prepping under the radar are now out of stealth, and we can’t wait for you to see what this year’s spring crop of fintech entrepreneurs and innovators has in store.
Before we do, however, let’s take a moment to take a look back at last year’s FinovateSpring alums. As we scrolled through blog archives, several themes jumped out: the appetite for startups remains as passionate as ever, with three of our Spring 2013 alums being acquired by such financial sector potentates as Intuit and PayPal. And venture capitalists continue to see innovation in this space as a more than worthwhile investment, with 20 separate fundings for Spring 2013 alums
We’ve grouped the achievements into four categories: Exits, Fundings, Awards, and Acquisitions. Enjoy!
- Jack Henry buys Banno for undisclosed sum
- The rumors are true: eBay’s PayPal acquires Braintree for $800 million in cash
- Intuit buys tax planning/preparation specialist GoodApril
- TaxAct acquires Balance Financial
- CardFlight secures $1.6 million in seed funding from ff Venture Capital
- Encap earns seven-figure investment from ProVenture Seed
- EyeVerify earns $2.3 million in Series A funding
- Jemstep raises $4.5 million in Series A round
- Kabbage brings in $270 million in debt financing to provide small businesses with funding of their own
- Kabbage brings in $75 MIllion in debt financing
- Leaf raises $20 million from Heartland Payment Systems
- Alternative lender LendUp raises $14 million in new funding
- D3 Banking creator Lodo Software Brings in $3 million
- Narrative Science secures $11.5 million in Series C funding
- OpenCoin wins investment from Google Ventures, IDG Capital Partners
- P2BInvestor raises $1.2 million in Series A round
- PayNearMe leverages Family Dollar Partnership; raises $20 million
- PayNearMe raises $10 million in Series D funding, launches Express Merchant Onboarding Option
- Prestadero raises 5 million pesos ($400,000 USD) in first round of funding
- Quantopian raises $6.7 million in Series A round
- Realty Mogul raises $9 million in round led by Canaan Partners
- SeedInvest raises $2 million in crowdfunded investment campaign
- SeedInvest Raises $1 million in round Led by Jumpstart New Jersey Angel Network
- Zooz Closes $2 million Series A round Led by XSeed Capital
- OpenCoin acquires SimpleHoney
- Kofax acquires data integration software provider Kapow Technologies
- NICE to acquire Causata to enhance customer experience management