New Capital to Foster Rapid Growth of Online Lending Platform for Middle Class Borrowers
CHICAGO, IL--(Marketwired – Aug 14, 2013) - AvantCredit (https://www.avantcredit.com), the first analytics-based online personal lender in the near-prime space, announces a $20 million equity round led by August Capital and Victory Park Capital. The funding brings AvantCredit's total equity raised and debt committed to more than $54 million and comes just four months after their Series A funding.
AvantCredit plans to use the new capital to grow its loan portfolio, fund geographic expansion, and further develop its machine learning lending platform, a new undertaking in the near-prime consumer lending space.
"We are excited to continue to support AvantCredit," said Eric Carlborg, partner of August Capital. "In just a few months, the company has built a unique underwriting algorithm and demonstrated operational excellence with efficient customer acquisition and disciplined loan servicing processes. The capital we are providing is to help AvantCredit to continue on this trajectory."
"Customers are responding to AvantCredit's fair assessment of their credit-worthiness and its convenient online process," said John Sun, co-founder and chief risk officer of AvantCredit. "We are excited to provide an alternate solution to individuals who have found it hard to get a personal loan from traditional lenders. The ongoing support from August Capital and Victory Park Capital will allow us to strengthen our analytics and technology infrastructure in order to provide our customers with an even better borrowing experience."
The company is currently providing personal loans between $1,000 and $20,000 to near-prime borrowers in California, Texas, Georgia, South Carolina, Illinois, Wisconsin, Louisiana, Oregon, Delaware, Idaho, Virginia, Missouri, Alabama, Utah, New Mexico and South Dakota, with Colorado coming soon.
AvantCredit is changing the way near-prime individuals borrow money. Utilizing advanced algorithms and machine-learning capabilities, the company offers a unique and highly customized approach to the personal loan process. The combination of technology, analytics and customer service capabilities allows the company to offer an easy-to-use online process for loans to borrowers in the near-prime segment, all entirely online. AvantCredit operates in 16 U.S. states and is licensed and regulated on a state by state basis. Find out more at AvantCredit.com
About August Capital
August Capital was founded in 1995 to invest in companies differentiated by technical innovation and entrepreneurial excellence. Today, August Capital's eight investment professionals have more than a century of combined venture and operational experience. Together they manage $1.3 billion and have invested in more than 75 companies across the technology spectrum. From its inception, August Capital has funded an extraordinary group of entrepreneurs who have built significant, long-term value across the full range of information technologies. The companies that August Capital's partners have backed represent an aggregate market capitalization of well over $250 billion, generate in excess of $75 billion in annual revenue and employ a quarter of a million people around the world. This success is a testament to the entrepreneurs themselves, as well as the fundamental technologies they have created. We are proud to have supported these entrepreneurs and their companies as they have grown and prospered. For more information, visit: http://www.augustcap.com/.
About Victory Park Capital
Victory Park Capital is an alternative investment firm that provides private debt and equity financing solutions to middle-market and lower middle-market companies across a wide range of industries. The firm focuses on traditional and complex situations, and seeks to build long-term sustainable value in its portfolio companies. VPC's focus on certainty and speed to close provides the companies it seeks to invest in with a high level of security throughout the relationship. For more information, visit: http://www.victoryparkcapital.com.