Cheers to a new year! After ringing in 2014, we wanted take a look back at the capital raised by Finovate alumni in 2013. It was quite a year, with alums pulling in $825 million, $365 million more than in 2012 for an increase of about 80%.
2013 funding summary:
- 62 companies raised $825 million
- Q4 had the most capital, with a total of $294 million raised by 17 companies (more than half by Xero, which landed $150 million).
- October was the busiest month, with $177 million raised (mostly Xero’s $150 million)
- May was second highest with $91 million raised by 7 companies
Last year Finovate alums took in almost twice as much as 2012, when 44 Finovate alums collectively raised
$460 million. The chart below shows the quarter-by-quarter comparison for both years.
— blog post
More than $155 million raised by 14 companies
January — $57 million raised by 6 companies
February — $56 million raised by 5 companies
March — $42 million raised by 4 companies
— blog post
More than $205 million raised by 15 companies
June — $81.7 million raised by 6 companies
May — $91.5 million raised by 7 companies
April — $32 million raised by 2 companies
— blog post
More than $171 million raised by 22 companies
July — More than $63 million raised by 8 companies
August — More than $26 million raised by 6 companies
September — $82 million raised by 9 companies
More than $294 million raised by 17 companies
October— $177 raised by 6 companies
November — More than $87 million raised by 7 companies
December — More than $30 million raised by 6 companies
Fresh off its announcement of having raised $14 million in capital, alternative lender LendUp has launched its iPhone app.
The app will enable borrowers on the go to get short-term loans of up to $250. Return customers can borrow as much as $1,000, with deposits available in as little as 15 minutes for borrowers at participating banks.
LendUp earned Best of Show honors earlier this year at FinovateSpring in San Francisco. See its winning demo here
LendUp has secured $14 million from Google Ventures and QED Investors to help consumers with little to no credit gain access to short-term capital. This latest round brings LendUp’s total funding to more than $18 million.
LendUp provides an alternative to the kind of high-interest loans which are often the only recourse for those in underbanked communities. The company provides loans of up to $1,000 annually with rates as low as 29% APR. Additionally, the loans come free of rollover charges and have no hidden fees.
The company’s technology includes algorithms that help target those lenders who are most likely to repay their loans. This allows LendUp not only to provide loans to those unable to borrow from traditional sources, but also to do so at a reasonable cost to the borrower and reasonable risk to the lender.
More than just a provider of affordable short-term financing, LendUp encourages socially responsible lending through its LendUp Ladder program. The LendUp Ladder program is geared toward helping borrowers build their credit through a combination of small dollar/short-term loans (typically up to $250 for up to 30 days) and educational resources on managing credit.
LendUp was most recently in the news courtesy of its partnership with Corduro (FS2013) to provide loans to help cover medical expenses
. LendUp also launched a program to provide instant online loans
earlier this year, the first company in the U.S. to offer such a service.
LendUp demoed its technology at FinovateSpring 2013 in San Francisco, where the company was among those voted Best of Show by conference attendees. See LendUp’s presentation here
They aren’t calling it “CorduroCare” – at least not yet. But the new partnership between a pair of Finovate alumni does aim to make it easier for people to pay their medical bills.
As reported in a VentureBeat exclusive, a program launched by Corduro and LendUp will allow patients at participating hospitals to take out loans through LendUp. First-time borrowers will be charged up to 15% of the total loan amount, and discounts are available for borrowers who make timely payments, pay early, or take advantage of LendUp’s credit betterment/financial health resources.
Once approved, borrowers use Corduro’s mobile app (available for both iOS and Android) to pay their bill. The largest hospital currently participating in the program is Dignity Health, a non-profit hospital network in California.
Corduro was founded in 2010 and is headquartered in Southlake, Texas. The company’s PayMobile app enables one-touch payments, credit card acceptance, and also includes a secure mobile wallet.
Based in San Francisco, California, LendUp was founded in November 2011 by Sasha Orloff and Jacob Rosenberg. The company’s LendUpLadder solution provides small dollar loans to help borrowers manage expenses and build credit.
Corduro and LendUp both demoed their technology at FinovateSpring 2013 in May, with LendUp winning Best of Show
honors. Watch Corduro’s presentation here
. See LendUp in action here