Alternative Lender LendUp Raises $14 Million in New Funding

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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.

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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.

Finovate Alumni News– August 2, 2013

  • Finovate-F-Logo.jpgNetbanker looks at LendUp and BillGuard as 2 innovators creating services to protect the elderly from spam.
  • Kofax acquires data integration software provider Kapow Technologies.
  • Startup Owl features Lighter Capital and On Deck. Check out Lighter Capital at FinovateFall in NYC.
  • Bill.com’s two-factor authentication brings security to SMBs.
  • Thoma Bravo completes billion-dollar acquisition of Intuit Financial Services, re-launched as Digital Insight.
  • Net Element International integrates its Aptito POS payments platform with TSYS.
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.

Corduro and LendUp Partner to Provide Loans for Medical Expenses

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.

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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.
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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.

Finovate Alumni News– July 1, 2013

  • FinovateLOGO.jpgCorduro teams up with LendUp to provide loans to help pay for medical expenses.
  • Entrepreneur Handbook reports on EZBOB‘s 12-month loan for online retailers.
  • CrowdFundBeat features SeedInvest and its new feature, SeedInvest Groups.
  • TSYS announces completion of NetSpend acquisition.
  • Banking Technology takes a look at LICUOS and the company’s win of Innotribe Startup Disrupt at Next Bank Madrid.
  • SafetyPay and GlobalCollect partner to advance secure Int’l payment solutions to over 300 million consumers.
  • Navallo.net interviews BillGuard CEO Yaron Samid.
  • SecondMarket expands into Bitcoin.
  • Virtual Piggy teams up with Live Gamer.
  • AG Beat describes why Kabbage and other alternative lenders will remain prevalent.
  • miiCard wins award for Technology Innovation in Financial Services at the 2013 ScotlandIS Digital Technology Awards in Glasgow.
  • BlinkMobile Interactive announces partner agreement with Linktech Solutions.
  • Pymnts.com interviews CSI Enterprises CEO, Keith Stone, on recent updates to the company’s globalVcard platform.
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.

Finovate Alumni News– June 28, 2013

  • Finovate-F-Logo.jpgCapital Access Network achieves new record of $66 million in monthly volume.
  • CoverHound names Keith Moore Chief Marketing Officer.
  • ProjectionHub and Lendio partner to help small businesses find the right loan.
  • Green Bay Press Gazette features GoBank on the heels of the company’s public launch this week.
  • Kashoo publishes interview with company “Jack of All Trades” Amrik Randhawa.
  • OneID provided to students of Sydney, Australia’s MacQuarie University.
  • Techcrunch takes a look at LendUp’s plan to provide instant online, mobile loans.
  • SeedInvest raises $1 million in round led by the Jumpstart New Jersey Angel Network.
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.

Finovate Alumni News– June 26, 2013

  • Finovate-F-Logo.jpgWalmart names InComm supplier of the year.
  • Crawford Technologies announces new partnership with Striata.
  • American Banker reports: Q2ebanking to Resell Andera Software.
  • SumUp launches plug and play POS tech.
  • Banno names Ben Metz as CTO.
  • Receivable Exchange closes $10M funding round led by current investors.
  • GoBank goes live, mobile banking app available on iOS.
  • Newfination interviews Sasha Orloff, CEO of LendUp.
  • IntelliResponse adds VOICES to virtual agent technology.
  • Lloyds Bank partners with Monitise to develop a suite of mobile card acceptance solutions for micro-merchants, start-ups and small business owners.
  • LICUOS wins Innotribe Startup Disrupt competition at Next Bank Madrid.
  • Realty Mogul tops $2 million raised one month after reaching $1 million raised mark.
  • Finect advises FIs not to panic when it comes to spot checks from FINRA.
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.

Finovate Alumni News– June 21, 2013

  • Finovate-F-Logo.jpgBraintree opening office in Sydney, Australia, that will cater to developers and startups.
  • Monitise named winner in the Inspire Wales Awards.
  • Pindrop Security raises $11 million led by Andreessen Horowitz and Citi Ventures.
  • Metaforic wins American Technology Award for Cyber Security.
  • New Business interviews CurrencyFair founders on saving money when making foreign currency transactions.
  • Biz Report’s Mobile Marketing column features 3 tips to improve location-based campaigns in an interview with Locaid CEO, Rip Gerber.
  • INTJ Capital takes a look at QuantConnect’s announcement that it has added historical FX and US equity tick data.
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.

Finovate Alumni News– June 6, 2013

  • FinovateLOGO.jpgCentral Intelligence Agency takes an actionable interest in Narrative Science.
  • IT operations management company Boundary touts its relationship with CurrencyFair.
  • Backbase CEO and co-founder Jouk Pleiter warns that bank customers are “no longer content to do the groundwork.”
  • Mercator Advisory Group analyst takes a look at TSYS’s proposed acquisition of NetSpend.
  • Mitek, LendUp, & Fuze Network dubbed runners up in 3rd Annual Core Innovators Mega Challenge.
  • TIO Networks announces strategic relationship with Aio Wireless.
  • Stockr wins Vator Splash LA startup competition, crowned most exciting company.
  • BankersLab launches Bank-it: Credit Edition.
  • Personal Capital to establish a Denver office and hire 100 financial advisers.
  • Business Insider interviews Braintree CEO, Bill Ready.

<div 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.