OnDeck provides working capital and short-term loans to small businesses, using proprietary FICO-like credit models that evaluate business data such as revenue and repeat customers. The platform can make lending decisions within minutes and fund within a day. Average loan size is $40,000, with loans up to $250,000 and typical terms of 3–24 months. Tens of thousands of businesses across 725 industries have taken loans, and the company grew 150% in 2013. Financially, OnDeck has raised $180 million in equity and secured over $300 million in debt financing, and expects to have deployed $1 billion in capital to small businesses by mid-March. The company plans to use new funds to accelerate product development, geographic expansion, marketing and hiring, and is installing public-company discipline though an IPO is not the current focus. OnDeck operates a technology platform that aggregates data and uses electronic payment signals to evaluate the financial health and creditworthiness of small and medium-sized businesses and deliver capital to an underserved market. Launched in 2007 and led by CEO Noah Breslow, the company has deployed over $600 million in capital to tens of thousands of businesses across roughly 700 industries. OnDeck received funding commitments in the form of credit facilities totaling more than $130 million and intends to use the proceeds to deploy additional funding and develop new products. The platform focuses on faster, data-driven underwriting and distribution of loans to Main Street businesses. The company's current financial activity centers on expanding lending capacity via institutional credit backers. Launched in 2007, On Deck Capital offers short-term online loans to Main Street small businesses, using data aggregation and electronic payment technologies to evaluate creditworthiness. The company has deployed $400 million in loans and in 2012 secured $100 million in credit facility commitments from Goldman Sachs and Fortress Investment Group. It expanded distribution to 1,500 partners, grew to 160 employees, and saw revenue rise from $1.5M in 2008 to just under $20M in 2011 and $37M in 2012. Repeat customer base grew 34% in 2012. Management says the new funding will let On Deck provide more capital to small businesses in 2013 than in the previous five years combined and bring improved online lending tools to market. The company also ended acquisition discussions with Wonga (offers reportedly as high as $250M) and added IVP General Partner Sandy Miller to its board, which the CEO said could signal IPO ambitions. On Deck Capital provides simplified lending to small businesses using a proprietary platform that aggregates electronic data and ePayment information. The platform enables merchants to link online banking, accounting and payment processing while aggregating social, tax and industry data to create merchant profiles. On Deck’s software analyzes data points — customers, cash flow, sales and registered complaints — to assign a “Business Credit Score” focused on business performance rather than personal credit. The company has deployed $275M in capital to SMBs and expects to cross $300M early next month; loan originations have increased 50% in the last four months. To scale lending nationally, On Deck has been beefing up its capital reserves and expanding lending capacity. The product aims to give banks new principles to evaluate SMB credit potential and improve access to capital for millions of underserved small businesses. On Deck Capital matches small and medium-sized businesses with lenders by aggregating electronic data sources and using payment data to assess creditworthiness. The company developed an "On Deck Score" in partnership with Equifax to provide lenders a business-focused credit metric beyond owner personal credit scores. Its platform links online banking, accounting, merchant processing and aggregates social, tax and industry data to streamline underwriting for sub-$250K loans. On Deck has connected small businesses with over $125 million in capital at an average loan size of $30K and reported growth in customer acquisitions and loan applications in 2011. The startup says its recent funding will help it continue to bring disruptive technology to an underserved Main Street segment. Launched in 2006, the company has added senior sales and business-development executives and increased customer acquisition momentum to roughly 4,000 customers.

Total raised

$415M

Funding rounds

8

Latest round

Equity

Latest activity

Mar 2014