Small Business Lending Platform Lendio Raised $55 Million
Considering how imperative working capital is for small businesses, it’s no wonder that the market for business loans has expanded in recent years. Of course, with an increase in options comes the need for entrepreneurs to cut through the noise and go straight to their best bets. That’s what the lending platform Lendio boasts — and it’s set to get a big boost after closing a sizeable funding effort.
This week Utah-based Lendio announced that it had raised $55 million in their latest round. The Series E breaks down to a $31 million equity investment from Mercato Partners’ Traverse Fund coupled with a $24 million debt facility from Signature Bank. Additionally the company notes that the round was “oversubscribed,” with previous investors Napier Park Financial Partners, Runa Capital, Comcast Ventures, Stereo Capital, and Blumberg Capital, also participating.
As a loan marketplace, Lendio connects business owners with various funding products that meet their needs. With a streamlined application process, businesses can then view multiple options. Currently the site supports short-term and long-term business loans, business lines of credit, merchant advances, equipment financing, and more. In just two years, the company has become the “largest small business financing marketplace in the United States,” with more than $2 billion in loans being facilitated through the platform.
Aside from the lending, Lendio also offers its own bookkeeping solution called Sunrise. This product offers a free self-service tier as well as dedicated professional bookkeeping help starting as low as $99 a month. Lendio says the newly-injected funds will allow them to further expand Sunrise, stating, “As the company explains, “By further integrating its Sunrise bookkeeping and loan marketplace platforms, Lendio will be able to proactively meet the capital needs of this growing number of business owners.”
In a press release revealing the latest funding round, Ledio co-founder and CEO Brock Blake said of the investment, “This $55 million round is a significant milestone in Lendio’s mission to fuel the American dream as a financial matchmaker that brings high-tech, high-touch capital to the small business economy.” Blake continued, “With these funds, we are strongly positioned to grow our existing platform as a trusted loan facilitator that supports both lenders and borrowers, while building out a range of new integrated lending services that get the right loans into the right hands at the right time. We are grateful for the continued support and trust of our investors who believe in our growth strategy.”
As for Mercato Partners’ decision to invest in Lendio, Traverse Fund senior investor Ryan Sanders said, “Lendio’s ability to combine data analytics with the human touch to connect small businesses quickly and precisely with ideal lending partners has made all the difference in its success,” adding, “Lendio uniquely solves the problem of inefficient capital for small businesses by bridging lenders and borrowers. They are able to connect both sides and facilitate loans faster and more effectively between small business owners and lending institutions.”
Although platforms that aggregate lending products aren’t especially unique, clearly Lendio has created something special in the eyes of investors. Moreover their vision of combining bookkeeping services with access to capital seems sound. Therefore, now flush with cash, small business owners can surely expect to hear much more about Lendio in the future.