Crowd lending fintech raises more than $17M
The crowd lending startup P2Binvestor has secured more than $17 million in funding from more than 20 participants to expand its bank partnership program, the company announced Thursday.
It was the fourth round of funding for the Denver company. The combination of debt and equity brings P2Binvestor’s total equity raise to over $13 million since 2013. The round was led by angel investors.
P2Binvestor, which was founded in 2012, acts as a middleman between small and midsize businesses and banks.
Managing a commercial client relationship and a team of accredited investors, the startup helps community banks provide such business customers with growth capital at lower interest rates. These businesses are sometimes ones that would not qualify for a traditional commercial line of credit.
P2Binvestor's lending portfolio is mainly made up of loans originated by banks as well as private and institutional investors. Because of debt funding, the fintech is also able to provide its own lines of credit.
In October 2017, the fintech startup began its bank partnership program with New Resource Bank, a part of Amalgamated Bank. Since then, the bank has closed seven loans worth more than $16 million through the startup.
“Over the course of the past few months, P2Bi has focused on building a new partnership model with community banks that is proving to be very successful,” Krista Morgan, P2Binvestor CEO and co-founder, said in a press release.
“Growing businesses love the idea that we can graduate them to cheaper financing without the hassle of switching, and banks love that they can be the first lender to a growing business building a valuable, long-term relationship. This raise enables us to onboard new banks into the program.”