Alternative lender Social Finance Inc has raised $200 million in Series D funding. Third Point Ventures led the round with participation from other investors that included Wellington Management Company LLP and Institutional Venture Partners. Goldman Sachs was the placement agent.
San Francisco, Calif. — February 3, 2015 — Social Finance, Inc. (SoFi), a leader in marketplace lending, today announces $200 million in Series D funding led by Third Point Ventures and affiliates of Third Point LLC, with Wellington Management Company LLP, Institutional Venture Partners and existing investors also participating in the round. Goldman Sachs served as sole placement agent to the company on the financing. SoFi will use these funds to fuel the expansion of its consumer lending products throughout the United States and build out its marketplace with new options for investors.
SoFi launched as an alternative to traditional banking in 2011, and was the first to offer refinancing of both federal and private student loans. Since that time, the company has originated over $1.75 billion dollars in loans, and expanded to offer a suite of solutions for early stage professionals, including mortgages, MBA loans, and personal loans. Its low down payment mortgages and mortgage refinancing are currently available to qualified borrowers for primary residences in 12 states plus Washington, DC and will expand to additional states soon.
“Member response to the SoFi experience – our nontraditional underwriting approach, product innovation, and seamless customer service – has proven that we’re becoming the preeminent financial services provider for early career professionals,” said Mike Cagney, CEO of SoFi. “This financing allows us to continue to expand our unique offerings to them while delivering access to premium credit for our marketplace investors.”
Commensurate with its growth, in the past year SoFi has significantly strengthened its team and operations. The firm currently has nearly 200 full-time employees and is actively recruiting in several areas. Most recently, SoFi opened a 50+ person office in Healdsburg, California to house some of its sales, servicing and underwriting teams. SoFi also has offices in Washington, DC, Helena, Montana and Frisco, Texas.
In addition to its consumer lending products, SoFi provides its members with services like career advising, access to its member network, and entrepreneurial support to help them achieve financial and professional success. To date, SoFi has helped more than 60 SoFi members secure new jobs through its career support program and aided over 20 entrepreneurs in starting businesses.
SoFi is a leader in marketplace lending and the largest provider of student loan refinancing, with over $1.75 billion in loans issued. SoFi helps ambitious professionals accelerate their success with student loan refinancing, MBA loans, mortgages, and personal loans. Its nontraditional underwriting approach takes into account merit and employment history among other factors to provide unique financial and investment products. For more information, visit SoFi.com.