News that Lending Club has raised $115 million in debt and equity is a reminder that alternative lenders continue to be a magnet for venture capital.
The equity stake totals $65 million, and comes courtesy of BlackRock, Sands Capital, T. Rowe Price Associates, and Wellington Management Company. This boosts the company’s total capital raised to more than $280 million.
Lending Club also announced that it was acquiring Springstone Financial in a cash and stock deal worth $140 million. Springstone specializes in providing financing for medical patients and for medical professionals looking to fund their continuing education.
Moving into medical financing is apparently part of Lending Club’s overall strategy for growth. Last month, the company announced
that it was moving into small business lending, challenging incumbents like Kabbage
, CAN Capital
, and OnDeck
. The company has also begun selling loans to community banks, announcing
agreements with seven small banks last December.
Lending Club has doubled its annual loan volume every year, and has paid more than $300 million in interest to its investors. The company reported
surpassing the $3 billion loans originated mark at the end of 2013.
In the top five of Forbes’ “Most Promising Companies” roster for 2014, long-time Finovate alum (StartUp 2007
) Lending Club was founded in 2006 and is based in San Francisco. Renaud Laplanche is CEO.