Vouch operates a lending platform that uses a borrower’s social connections to assess creditworthiness and allow friends or family to "vouch" for loans, including agreeing to pay a portion if the borrower defaults. The service targets users with limited credit histories—requiring a FICO score of at least 600 and no bankruptcy or foreclosure—and has a heavy mobile user base (70–80% of traffic). Loans were previously $500–$7,500 with interest rates of 5–30% and terms of one to three years; after the new funding Vouch can now lend up to $15,000. The company charges an origination fee of 1–5%, assesses late fees (5% of loan amount or $15 minimum), and does not charge application, annual, or prepayment fees. Vouch has originated $1 million in loans to date, has thousands of users across borrowers and sponsors, and reports a majority of loans in good standing and a low delinquency rate. The user base skews slightly female, about half are over 35, and roughly one-quarter of borrowers are immigrants. The team includes founders Yee Lee, Sue Korn, and Hugh Olliphant and draws experience from PayPal, Prosper, and Google. Vouch helps customers build a network of trusted friends and family who would vouch for them in times of need, creating a way of looking at creditworthiness that spans beyond a FICO score. The company is bringing friend-powered finance to the lending industry and believes people should get credit for having strong social backing. Vouch uses these personal networks to help borrowers obtain personal loans on better terms than other lending institutions or marketplaces typically offer. The product centers on friend- and family-based vouching as an alternative signal of creditworthiness. The article notes a recent fundraising event but does not disclose further operating metrics or specifics about product roadmap beyond its core concept.

Total raised

$9M

Funding rounds

2

Latest round

Series A

Latest activity

May 2015