The nascent US small business lender Bond Street has just closed on a sizeable round of financing.
The young marketplace lender has raised $110m of debt and equity funding. The round was led by Spark Capital and Jefferies. Jefferies will be the Bond Street’s primary institutional partner over the coming year, acting as the main investor in loans originated by the platform. CEO and Co-Founder David Haber suggested to Ryan Lichtenwald of LendAcademy that Bond Street might soon look to produce a securitization – a now commonplace practice among America’s rapidly scaling marketplace lenders.
Participation in the round also came from existing seed-stage investors Homebrew, Founder Collective, Collaborative Fund and Red Swan. New VC investors included Slow Ventures and Eagle Cliff. A number of Angel investors were also involved: Nathan Blecharczyk (Co-Founder of Airbnb), David Chang (Chef and Founder of momofuku) and Nic Jammet, Nate Ru and Jonathan Neman (Co-Founders of sweetgreen).
Bond Street kicked into life in the summer of 2014. The platform offers 1 to 3 year term loans, ranging from $50k to $500k in size. Mr. Haber has indicated that the platform may also offer a credit line product in the not too distant future. Bond Street is currently returning an average yield of 11-11.5% to investors.
The platform places a firm emphasis on technological power. Bond Street is integrated with Quickbooks and other software products – providing visibility into the cash flows of a business, and allowing loans to be extended more flexibly than credit reference agency-reliance permits.
Mr. Haber indicated that the capital injection would be used to help Bond Street continue to scale by building on both the team and the platform’s technological edge – with a focus on proprietary data sources for borrower acquisition.