Fynanz, the US start-up behind a private lending platform for student loans, has raised $6.5 million in a series a funding round led by Draper Fisher Jurvetson (DFJ).
Launched in 2008, Fynanz initially targeted college students struggling to find loans in the post-credit crunch market with its own peer-to-peer Prosper-like platform.
However, last January the firm abandoned this approach, citing tough market conditions, and began offering its platform to financial institutions instead.
The start-up now operates cuStudentLoans.org, a private lending marketplace that enables credit unions to offer private student lending. The new funding will be used to to expand the platform, which currently has around 30 credit union partners.
Vince Passione, CEO, Fynanz, says: "Our current credit union partners are very committed to the private student loan market and Fynanz looks forward to expanding our credit union network nationally."
Josh Stein, MD, DFJ, adds: "We believe that the private student marketplace and the technology developed by Fynanz significantly diversifies and enhances a credit union's portfolio."
The funding round also saw investment from DFJ Gotham Ventures, The Brazos Group, Zelkova Ventures and JBR Media Ventures.