Pave – the online lending platform for the millennial generation – has closed an $8m Series A funding round.
The funding comes courtesy of Maxfield Capital, a venture capital firm that targets growth stage technology companies. A number of existing investors were also involved. Pave intends to use the capital to further expand the platform’s innovative financing program.
Pave provides loans of between $3,000 and $25,000 to millennial borrowers – young people who often carry thin credit files. The platform has been built up around an innovative approach to credit – one which goes beyond the hallowed FICO score in pursuit of a more holistic understanding of the creditworthiness of borrowers that have been underserved by traditional financial services providers. APRs on Pave loans begin at 6%, and carry either 2 or 3 year terms.
Oren Bass, CEO and Co-Founder of Pave, commented:
“Over the past year, we have been building a platform that empowers borrowers, even those with limited credit histories, to advance themselves by securing the financial resources they need. There are many creditworthy individuals that have not been treated fairly by the financial system and we solve that problem by looking at the complete picture of an individual, including their potential. With this investment we are in a great position to grow our team, and most importantly, expand lending to overlooked borrowers.”
In December 2015, Pave clinched up to $300m in lending capital from a consortium of investors in a fundraise that was led by Seer Capital. Mr. Bass at the time spoke of his excitement over kicking off the new year with “the proper backing and resources to develop a host of tailored financing options for borrowers with great potential”. With the $8m in equity capital now secured, it feels as though new product launches may be in the pipeline.
Alexander Turkot, Founder and Partner of Maxfield Capital, weighed in:
“We are excited to support Pave’s growth and their unique, personalized approach to underwriting and responsible lending. Their multi-disciplined management team is tackling a compelling market opportunity, with a distinct product that has clear benefits to individuals and investors. We are excited to work with the talented team.”
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.