Pave, the online lending platform that is re-inventing borrowing for the Millennial generation, today announced it has completed an $8 million Series A round of equity investment.
The round was led by Maxfield Capital with participation from existing investors and will enable Pave to expand its innovative financing program to help more, and often underserved, individuals achieve their financial and personal goals affordably.
“We are excited to support Pave’s growth and their unique, personalized approach to underwriting and responsible lending,” said Alexander Turkot, Founder and Partner of Maxfield Capital. “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.”
By considering more than a traditional FICO score, Pave’s holistic approach to lending provides individuals, particularly those with limited credit histories, access to loans at better rates than traditional sources. Through Pave, borrowers may receive loans up to $25,000 with annual percentage rates starting at 6 percent, payable over a term of two or three years.
“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,” said Oren Bass, CEO and Co-Founder of Pave. “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.”
Pave secured a large financing of $300 million to fund the origination of loans on its platform in December 2015.