LoanDepot Announces Closing of $150M Crowdlending Fund to Further Fuel Its Record-breaking Performance with Investments in Technology and Product Development Projects

As a national marketplace lender, the loanDepot platform is disrupting finance by dissolving the lines between mortgage and non-mortgage credit

By Robert Hoskins

Irvine, California – LoanDepot announced the closing of $150 million in term debt financing and intends to use the proceeds to further fuel its record-breaking performance with continued investments in technology and product development, and to leverage its balance sheet to hold certain loan assets.

loanDepot matches borrowers through technology and high-touch customer care with the credit they need to fuel their lives

“Capital investment in consumer lending and in the mortgage industry is very tight and highly selective,” says Anthony Hsieh, chairman and chief executive officer at loanDepot. “Investors are interested in category leaders with scale who succeed in all credit cycles. This deal confirms the strength of our business model and the positive momentum of our brand. It also signals the competitive advantage loanDepot has in accessing capital in today’s market as we pursue our long-term growth strategy.”

As the nation’s second-largest nonbank consumer lender, loanDepot heads into the second half of 2016 with second-quarter fundings reaching nearly $10 billion in home, personal and home equity loans. Total fundings for the first half of 2016 are up 16 percent compared to the same time last year. The number of loans funded by loanDepot in the first six months of 2016 increased by 33 percent compared to the same period last year, further demonstrating the value of the company’s personal loan platform and cross-selling opportunities between loan products.

“Working capital and liquidity are essential for today’s nonbank lender, and only available if you have scale, a solid track record and a great reputation,” says Hsieh. “loanDepot is a strong and stable company responsible to our customers, employees and shareholders. We’ll continue reinvesting back into our platform in a variety of ways, including technology, the customer experience and product development. We believe this approach strengthens our position as the leading modern lender as the industry heads into the next generation of lending.”

In November 2015, the company postponed its initial public offering. This capital debt financing is the continuation of its capital strategy and commitment to pursue long- term growth plans.

Launched in 2010, loanDepot has achieved 80 percent year-over-year average annual growth from 2010 to 2015. The company continues to make significant reinvestments into its proprietary technology and marketing platform, credit and risk models, and product delivery systems.  The company operates from eight business centers and 150+ loan stores across the nation. loanDepot was the first nonbank consumer lender to offer home, personal and home equity loan products nationwide.

loanDepot matches borrowers through technology and high-touch customer care with the credit they need to fuel their lives. As a fast-growing national marketplace lender, the loanDepot platform is disrupting finance by dissolving the lines between mortgage and non-mortgage credit.

The company has funded over $70 billion in loans since inception. loanDepot is passionate about emerging financial technology and dynamic product delivery supported by excellent customer service to empower consumers.

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Crowdlending Platform P2Binvestor Announces $50 Million Milestone

P2Bi simplifies lending through technology and provides efficient and competitively priced working capital to growing B2B businesses

 By Robert Hoskins

Denver, Colorado – P2Binvestor (P2Bi) announced that the firm has reached more than $50 million in invoices funded since signing its first direct client in May 2014. To date, P2Bi has financed the growth of companies in technology, natural foods and products, manufacturing, energy, and personnel services with average annual revenues ranging between $500,000 and $25 million.

Crowdlending Site P2Binvestor Announces $50 Million Milestone

“Exceeding $50 million in purchased invoices in 10 months is a huge achievement for us. It speaks volumes about the market demand for our product and the hard work of our amazing team,” said Krista Morgan, P2Bi CEO and cofounder. “I am confident our rapid growth will continue in 2015 as we launch new products; I’m especially excited about the first revolving line of credit for SaaS companies and a free-fill loan product for our natural foods customers,” Morgan added.

P2Bi’s crowdsourced funding model reduces its effective cost of capital, creating room for more flexible rates and terms for its clients. A crowd of accredited investors participates in funding each credit line, and investors earn a fair return on the platform in exchange for supporting P2Bi’s clients.

“The last year has been about proving we can underwrite effectively and be a good partner to the great companies we are funding,” said Bruce Morgan, executive vice chairman and cofounder of P2Bi. “Our innovative crowdfunding model has enabled us to achieve in a short amount of time what a traditional alternative finance company would take years to accomplish,” Morgan continued.

P2Bi can provide working capital financing of up to $5 million per client—normally secured by accounts receivable, future contractual revenue flows or other assets. The company’s aim is to improve access to working capital for growing businesses with a new generation of financing products.

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Finance-Technology Company Receives $2 Million Crowdlending Loan from Denver-Based P2Binvestor

New Peer-to-Business lender pools investment from more than 350 accredited investors to provide receivables-based, no equity loss loans for businesses

By Robert Hoskins

Denver, CO – Representing one of the largest single crowdlending transactions ever, P2Binvestor (P2Bi) announced that the crowdlender provided a $2 million line of credit to a Boulder-based Finance-Technology (Fin-Tech) client.  This credit line adds to P2Bi’s rapid growth and puts the young company on a run rate to achieve a lending portfolio of $25 million by the end of its fiscal year.

New Peer-to-Business lender pools investment from more than 350 accredited investors to provide receivables-based, no equity loss loans for businesses

P2Bi is a crowdlending platform that provides working investment capital via three types of asset-based loans to small and midsize businesses:

1. a receivables-purchase product;
2. an asset-backed line of credit, and;
3. a credit line secured by future contractual revenue.

“Our easy online application process, quick funding decisions, competitive rates, and crowdfunding model are what set us apart,” said Krista Morgan, P2Bi’s Co-founder and COO. “But at the end of the day, clients love doing business with us because we are genuinely interested in helping them grow. Securing growth capital shouldn’t be a cumbersome process. We make it easier for borrowers.”

The company and its crowd of accredited investors have the capacity to fund multi-million dollar credit lines, lend to companies in all 50 U.S. states, and work with businesses in various industries including technology, staffing, natural foods, manufacturing, and more.

P2Bi provides access to this pool of working capital for innovative, growing companies. It eliminates many of the barriers associated with traditional financing and the high costs associated with subprime commercial lending. The company uses technology and crowdfunding to lower its effective cost of capital to clients.

Established in 2012, P2Bi officially went to market in January 2014. To date, the company has originated financing to clients in six U.S. states in various industries that include technology, energy, staffing, natural foods, and construction.

P2Bi and its crowd of accredited investors provide businesses with flexible capital that can grow with them; line increases are available as clients need them. The company stands behind its financing by offering a rate guarantee that allows clients to transition, penalty free, to a credit line or term loan with another financial institution if they find a better interest rate.

“P2Binvestor’s funding is a long-term solution that also helps us tremendously in the short term as we aggressively scale our product. It allows us to defer an equity raise, which would have been otherwise unavoidable,” said a company spokesperson for P2Bi’s newest client and recipient of the $2 million credit line. The Boulder company asked not to be named as it prepares for its official public launch.

Both companies are alumni of Finovate, a prominent demo-based conference for innovative startups and established companies in the fields of Banking and  Fin-Tech. Finovate hosts a two-day showcase each spring and fall where leading Fin-Tech companies and startups present their technology business models.

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Israel is Now the Most Likely Place for People to Start a Tech Firm, States a Recent Economist Article Featuring a World Startup Report

Upround Ventures Announces First Series A/B Mentor Exchange and Upcoming Innovation Summit Events to Help Startups Cross the Series A Investment Chasm 

 By Robert Hoskins

Tel Aviv, Israel – Upround Ventures announcing two new events, Mentor Exchange and Innovation Summit, that will be held in Israel. Upround Ventures targets the gaps that exist after startups graduate accelerator programs or are initially funded with crowdfunding or angel sources. The firm engages qualified Israeli-based technology startups with a broad spectrum of financial and strategic capital from Europe, Asia, The United States, and Russia, helping to build relationships, create long-term value and grow networks worldwide.

Upround Ventures engages qualified, premium start-ups with active, global investors — to help address the Series A crunch.

“There is a chasm in the ecosystem today for Series A — the new Series B startups that are outside the Silicon Valley cocoon. Upround Ventures was launched based on feedback from both high-caliber entrepreneurs seeking more choices for capital globally, as well as investors in various parts of the world, who have been asking for smarter ways to reach new premium deal flow,” said Esther Loewy, founder and CEO, Upround Ventures. “It’s about democratizing the playing field and providing a continuum of process, funding and guidance.”

With an estimated 375 startups per million inhabitants, versus 190 in America, Israel is now the most likely place for people to start a tech firm, states a recent Economist article featuring a World Startup Report. Upround Ventures has already begun to identify and cultivate the game-changing technologies born in this region, then pair promising entrepreneurs with a network of VCs and other strategic investors who can fuel their sustained growth, and in turn, a thriving innovation economy globally.

Series A/B Mentor Exchange
A first-of-its-kind, Upround Venture’s Series A/B Mentor Exchange offers a network of experienced serial entrepreneurs and veteran executives to guide innovative early-stage technology companies in getting to the next stage. Mentors include Bruce Haymes of Nielsen, Ornit Shinar of Citi, Zohar Levkovitz of Amobee, and Ben Enosh of Plymedia, among others, who bring expertise spanning sales and marketing to financing and patents, to qualified post-seed-stage companies in the Network. The Mentor Exchange is the first of several initiatives to be kicked off this year that further reinforce the value proposition for Series-A-ready startups, as well as partners and investors.

“After startups graduate from incubators and accelerators they are often left in a ‘black hole’ without the support or expert advice they had while incubating. Upround’s Mentor Exchange provides entrepreneurs with an added edge at this critical stage; expert resources needed to hone their product, gain traction, build awareness, and network with global investors and partners,” commented Stephan Paternot, CEO of Slated, Inc. and advisor to Upround Ventures.

Upround Innovation Summit (Twitter #UproundSummit2014)
On May 19th, Upround Ventures will gather many of the world’s rising startups with global investors and corporate development executives looking for high-value, pre-screened companies.

To be held at IBM’s Innovation Center in Israel, the Upround Innovation Summit will feature:

• Globally renowned speakers from Silicon Valley, Hong Kong, France and other regions (see Agenda)
• The hottest technology startups in Israel, with innovations in mobile, media, big data, and Internet of Things, seeking strategic partnerships and global investment
• Active investors from the U.S., Europe and Asia, including Runa Capital, Benhamou Global Ventures, Alsop Louie, Culturecom Holdings, BMW i Ventures, Alcatel-Lucent, Honda, H-Farm & Orange Capital
• Sponsors and partners, including InvestHK, IBM, Herzog Fox & Neeman, Plymedia, CICC, TEICC, and StarTAU

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Registry of Accredited Investors’ Research Reports that General Solicitation Helped Raise $575 Million in 6 Months for Equity Investment Deals

Of 700 companies that filed Form D under the 506 (c) rule, 75% reported fund raising goals of under $10 million with almost 40% indicating offering amounts of $1.5 million or less

By Robert Hoskins

San Francisco, CA – On September 23, 2013, the Securities and Exchange Commission (SEC) began accepting filings under Rule 506 (c), a new method of using general solicitation to raise capital for private businesses through accredited investors.  Many see this new rule as a precursor to Equity Crowdfunding, which will permit regulated internet based fund raising from both accredited and non-accredited investors through approved internet portals.

The Registry of Accredited Investors provides CPA designed verification of Accredited Investor status. Quick, Confidential & Secure

The Registry of Accredited Investors, a private company that provides verification services to accredited investors, reviewed of all the Rule 506 (c) filings filed through Form D – Notice of Exempt Offering of Securities with the Securities and Exchange Commission since the legislation went effective in late September 2013 through mid February 2014.

Michael Berg, CPA, President of the Registry, noted, “That operating companies using the new exemption had reported raising over $575 million in under 6 months. This horse got out of the gate quickly.  The 506 (c) exemption seems very popular with a wide variety of companies.”

Some other highlights noted in the study:

• Over 700 companies have filed 506 (c) forms with the SEC.
• California had the most filings with 139 with Texas, New York and Florida far behind.
• The average reported age of Companies seeking investment was 2 years with a majority of reporting Companies less that one year old. 80% of filers had less than $1 million in annual revenue.
• The main industries using the exemption were Banking and Financial Services, Technology, and Real Estate.
• 75% of all filers reported fund raising goals of under $10 million with almost 40% indicating offering amounts of $1.5 million or less.
• Women represented only 4% of the Chief Executive Officers identified in the filings.

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Top Money Raised; Highest Average Pledge and Best Success Rates on Kickstarter

Top Kickstarter Success Stories in 2012

The Economist (01/17/13) – Interesting to note the diverse type of projects, industries and products that are all now successfully using Kickstarter rewards and donation crowdfunding campaigns to raise money from the Crowd.   Games raised the most crowdfunding money overall. Technology took the lead in the most money donated per transaction.  And the performing arts took the #1 spot in the overall success rate.

Top Industries Funded by Kickstarter Crowdfunding Campaigns

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The Top 5 Crowdfunding Raises 2012

Venture Beats’ visual journey through 2012′s biggest funding highlights

VC funding was down 15 percent in 2012, while crowdfunding grew 91 percent, as a new infographic from Startups.co shows.

And while venture capitalists focused on biotech, software, and industrial energy, angel investors focused on Internet startups, healthcare, and mobile. Which makes a lot of sense, given the massive disparity in investment size required for those sets of industries.

The cause of the shift in funding?

VCs invested less due to unfavorable IPOs such as Groupon in late 2011, and Facebook mid-2012, as well as concerns about additional taxation on capital gains due to fiscal cliff fears and the presidential election. On the other hand, crowdfunding grew, according to Startups.co, on the strength of the JOBS Act passage in April — and simply due to the fact that Kickstarter and Indiegogo campaigns like Ouya’s have raised millions of dollars, demonstrating that crowdfunding is a viable way to launch a product or start a business.

One other very interesting stat is Startups.co’s listing of the top angels of 2012, which is headed by 500 Startups’ Dave McClure:

1. Dave McClure – $16.6 million
2. Ron Conway – $10.2 million
3. Reid Hoffman – $4.15 million
4. Chris Sacca – $1 million

Read more…

Top 5 Crowdfund Raises in 2012