Fundera, the loan site for small-scale businesses has raised $11.5 million in the Series B funding round led by Susquehanna Growth Equity with participation from existing investors that includes QED Investors, Khosla Ventures and First Round Capital. This funding round has increased the total funding of the company to $15 million.
Founded in 2013, Fundera is the most-trusted online marketplace that help the small business owners get funding from providers by working with pre-screened lenders to assemble the highest quality funding sources. It disrupts the loan broker ecosystem and makes the process of getting a small business loan as transparent, fair and accountable as possible. The startup has a customer success team who work as impartial advocate on behalf of borrowers and the company produces content to educate and allow borrowers to make informed financing decisions.
“Everyday throughout America small businesses which represent the lifeblood of our economy are being taken advantage of by online lenders and brokers,” said Fundera founder and CEO, Jared Hecht. “By creating a transparent marketplace that lays out a small business owners’ loan options and empowers them with tools to choose the best option for their business, Fundera is revolutionizing how small business owners access credit while creating a software solution that is disrupting the loan broker industry.”
With the new funds, the New York-based company plans to boost its main aim of making small business lending more transparent and helping small business owners develop in the market with the responsible use of the loan money. It also plans to take in more of loan specialists and engineers to grow and refine its borrower experience. Also plans to go with developing new products to empower borrowers and to choose the best loan suiting their business.
With the similar passion as Fundera to empower consumers and to change the financial market, Susquehanna Growth Equity’s managing director Scott Feldman said, “As Susquehanna, we look for holitic teams that demonstrate true passion for their mission. As early investors in Credit Karma, we understand the Fundera model and have experience in helping companies transform areas of credit and financial services that empower consumers to win.” Further to the funding, Feldman has joined the Fundera’s board of directors.
Apart from the funding, Fundera has also helped lead the creation of Small Business Borrowers’ Bill of Rights that connected a major industry players with the goal of eliminating predatory lending and which is rapidly becoming the order of the day for fair online lending.