Participated · Series D · Jan 2022

Petal issues Visa credit cards (issued by WebBank) that let consumers who are new-to-credit qualify using their banking history rather than established credit scores. The company enables individuals to build credit histories and targets millions of U.S. consumers with limited or no traditional credit data. Petal has approved nearly 400,000 consumers for its credit cards to date, including more than 100,000 new cards approved in 2022. Led by CEO and co-founder Jason Rosen, the company plans to expand the Petal credit card program using the new capital. With the announced transactions Petal has raised more than $300M in equity capital and more than $680M in debt financing to date. The firm is based in New York, NY and Richmond, VA. Petal issues three Visa credit card products and a companion mobile app that use cash-flow underwriting (and traditional credit scores when available) to help underserved consumers build credit. Its cards are issued by WebBank while Petal manages servicing and monetizes via interchange, interest and card fees (including a $59 Rise membership). Demand has grown rapidly: Petal added 100,000 cardholders last year and reported 300,000 cardholders at its January 2022 Series D. At that time it said it was doing $20–30 million in annualized revenue, which rose to $80 million by year-end; management projects profitability sometime in 2024. The company says delinquency and default rates have not risen and have been improving this year. Petal conducted a restructuring in Q3 that reduced headcount by about 10% and currently has roughly 140 employees. Petal is spinning out its Prism Data unit (established in 2021, ~10 employees) to commercialize its cash-flow underwriting technology to other lenders and fintechs. Founded in 2016 and based in New York, Petal offers two Visa credit card products and a mobile app designed to help consumers build credit responsibly by underwriting on cash flow rather than traditional credit scores. Its proprietary underwriting, branded CashScoring, analyzes banking history—income, spending and savings—and was productized into Prism Data, a B2B platform launched in 2021 to provide transactional scoring and insights to other fintechs and financial institutions. Over the past year Petal tripled its user base and more than quadrupled revenue, growing from $11 million to nearly $50 million; it now reports nearly 300,000 cardholders and adds 10,000–20,000 new members per month. The company says members who joined with no prior credit history have reached an average credit score of 676. Petal has more than 160 employees (doubling over the last year) and plans to hire 100+ roles in 2022 while adding new card features and scaling to hundreds of thousands more cardmembers. Prism Data is described as a sister company and a strategic growth channel alongside Petal’s consumer card business. Petal is a New York, NY and Richmond, VA-based credit-card company that issues two Visa cards, Petal 1 and Petal 2. Petal 1 targets consumers with existing credit history; Petal 2 helps people build credit with a no-fee card, cash back and higher limits for those new to credit. The company uses a Cash Score—an alternative measure based on income, savings, and spending history—to evaluate creditworthiness and encourage responsible spending. Petal credit cards are issued by WebBank, Member FDIC. To date more than 100,000 people have been approved for the two cards. The company intends to use new financing to expand and support the Petal credit card program. Petal issues consumer credit cards and distinguishes itself by underwriting applicants based on prospective cash flow rather than traditional credit scores, enabling access for underbanked users. The company has grown by “tens of thousands” of customers since early 2019 and now employs about 100 people while operating remotely. Petal opened a second office in Richmond, Virginia and recently hired Kaustav Das as chief risk officer, bringing experience from Kabbage. Financially, Petal has raised equity rounds totaling roughly $100 million and in September secured a $300 million debt facility from Jeffries to finance its card product. In April the company closed a $55 million Series C to support expansion. Management’s near-term goal is to onboard hundreds of thousands of new customers over the next two years.

Led · Series B · Sep 2021

Buckle is a digital financial services company that offers affordable insurance for rideshare, delivery, and other gig‑economy drivers. It launched its core rideshare policy in 2019 combining personal and commercial coverages, and through acquisitions in 2020 and 2021 it obtained 49‑state insurance licenses via Gateway, American Service Insurance Company, and American Country Insurance Company. Buckle serves drivers for platforms including Uber, Lyft, DoorDash, Gopuff, Instacart, Amazon Flex, Uber Eats, Grubhub, Favor, Postmates, and Caviar. The company relies on a portfolio of reinsurance partnerships, recently renewing incumbent reinsurance agreements and adding a new reinsurer to support growth. Its business strategy includes expanding its gig product across additional states and broadening into insurance and credit products nationwide. Buckle has raised approximately $115 million of capital to date and used the latest debt upsizing to support distribution and growth on its carriers. Buckle operates a full-stack insurance-as-a-service platform focused on the U.S. gig economy, offering insurance and credit products to lower-income gig workers. Its core hybrid auto insurance policy for rideshare and delivery drivers uses Transportation Network Company (TNC) platform data to underwrite policies, replacing credit-score-based pricing. Buckle runs a multi-carrier insurance platform, has acquired and recapitalized three admitted carriers (Gateway Insurance Company, American Service Insurance Company, and American Country Insurance Company), and works with MGA partners to broaden product coverage. The company recently launched an auto financing product in Georgia with plans to expand credit offerings to other states. The new capital will be used to scale the digital insurance platform nationwide and to introduce additional insurance products and partnerships. Buckle has closed over $100 million in debt and equity funding since inception. Buckle provides total insurance coverage tailored to rideshare and gig-economy drivers, replacing standard auto policies with continuous 24x7 personal and commercial protection. Its core rideshare insurance policy launched in 2019 in collaboration with Munich Re’s Digital Partners and was later expanded through a partnership with Lyft. The company uses new sources of data to underwrite risk with the stated goal of making coverage comprehensive, affordable, and easy to obtain. In June Buckle announced the acquisition and recapitalization of Gateway Insurance Company, bringing 47 state insurance licenses into its operations. Buckle says it will use funding to reinvent the insurance model for drivers and expand coverage to transportation network companies, taxis, limousines, and livery businesses using the Curb app. The company plans to launch additional products and partnerships as it expands nationwide from its Jersey City, N.J. base.