Founded in 2013 by former PayPal, Prosper and Google alumni, Vouch Financial offers unsecured installment loans that use a borrower’s social network as an additional underwriting signal. Borrowers request between $500 and $7,500 (soon increasing to $15,000) and repay over one to three years at interest rates ranging from 5% to 30%. Friends and family complete a brief survey to ‘vouch’ for the borrower’s reliability and can optionally sponsor part of the loan starting at $25, a commitment that is repaid if the borrower defaults. The platform analyzes both traditional criteria, such as FICO scores (generally 600+), and numerous social metrics, including voucher response time and sponsorship amounts, to set pricing. During its beta, 70% of users access the service via the iOS app, highlighting a strong mobile focus. Vouch currently funds the loans from its own balance sheet and charges no application, annual or prepayment fees, though it collects a 1–5% origination fee and 5% late payment fee (minimum $15). The company employs 19 people and plans a full public launch in the coming weeks.

Total raised

$3M

Funding rounds

1

Latest round

Seed

Latest activity

Jan 2015