24 October 2017
Register now

P2BInvestor raises $7.7 million

15 November 2016  |  2411 views  |  0 Source: P2BInvestor

P2Binvestor (P2Bi), a marketplace lender that provides growing businesses with debt capital through a crowdfunding model, announced today that it has raised $7.7 Million in Series A1 funding led by Rockies Venture Club (RVC), the largest angel investor network in Colorado and Future Venture Capital Co., Ltd. (FVC), a Japanese venture capital firm with its US subsidiary, FVC Americas.

“This round of funds will be used to expand operations and invest in sales, marketing, and technology as we scale to meet market demand and push toward our goal of truly disrupting the factoring industry,” said Krista Morgan, the chief executive officer and cofounder of P2Binvestor. “We’re seeing more interest in our model as venture funding hits a two-year low and more entrepreneurs are looking for ways to grow their business while preserving their equity using good-quality, flexible debt.”

P2Bi has funded over $350 million in revolving credit to its more than 80 borrowers since May 2014 and its average line of credit size is $1 million. Approximately 150 accredited retail and institutional investors make up P2Bi’s crowd and help fund every line of credit the company provides to its borrowers. P2Bi is projecting $8.2 million in revenue this year and will be cash-flow positive in 2017. P2Bi aims to fund 112 new borrowers by the end of March 2017 when the company’s fiscal year ends.

Investment in P2Bi was the first direct investment by FVC outside of Japan. “Finding a high quality investment opportunity like P2Bi in Colorado and working with a partner like RVC to co-invest confirmed our decision to open our first subsidiary office outside Japan, FVC Americas in Colorado.” said Yuji Fujinaga, the chief strategy officer of FVC.

In September 2016, P2Bi announced that it provided a new borrower with the largest crowdfunded line of credit to date at $10 million. In April 2016, P2Bi announced a new relationship with MW Eaglewood Americas LLC, an SEC-registered investment advisor and leading fund in the marketplace lending space, that includes a significant funding amount earmarked to support debt facilities to P2Bi’s borrowers. In August 2013, P2Bi raised a $1.2 million round led by RVC and lead investor John Spiers, who founded venture-backed Colorado-based companies LeftHand Networks and NexGen Storage.

P2Bi is similar to a debt-based alternative lender or factoring company, but its model is rooted in efficiency and risk syndication to benefit both borrowers and investors with a focus on helping companies scale. Like a traditional factoring company, P2Bi provides a line of credit secured by assets such as accounts receivable or inventory to a borrower company after conducting an underwriting review of the applicant and approving the credit. The P2Bi difference is in the cost of capital, terms offered, and the online platform borrowers use to draw funds and manage their line of credit leading borrowers to better manage overall growth and improve profitability. P2Bi’s borrowers grow more than 50% year on year.

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comRegister nowvisit www.atos.net

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
20374 views comments | 31 tweets | 44 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15484 views comments | 24 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
11127 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
9244 views comments | 15 tweets | 29 linkedin

Featured job

London, UK (or flexible)

Find your next job