LoanHero Inc said Wednesday it raised another $2.5 million in seed funding led by Alsop Louie Partners and Mucker Capital. La Jolla, California-based LoanHero, an EvoNexus portfolio company, is an online lender.
SAN DIEGO, Jan. 20, 2016 /PRNewswire/ — Online lender LoanHero, Inc. today announced it has secured an additional $2.5 millionin Seed funding. Led by Alsop Louie Partners and Mucker Capital, this investment will allow LoanHero to offer financing to consumers nationwide. Since launching in April 2015, LoanHero has raised a total $4.2 million in equity funding and has achieved a lending capacity of $20 million.
LoanHero was launched to provide consumers with better loan products at the point of sale while addressing pain points for merchants and lenders. A balance-sheet lender, LoanHero has also partnered with multiple strategic lenders to address a wide spectrum of consumer needs across a variety of verticals. The company offers merchants a seamless technology platform with a streamlined application process and analytics dashboard that make it easy to provide customers with hassle-free financing.
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“Point-of-sale financing is a $500 billion industry that is ripe for disruption,” said Derek Barclay, LoanHero President and co-founder. “Lenders struggle to gain meaningful deal flow from merchants, and merchants are forced to apply for customer financing through a number of incompatible financing programs. Ultimately, the consumer suffers from multiple declines and the merchant loses the sale. At LoanHero, we’re redesigning the financing ecosystem to better serve consumers, merchants and lenders.”
In just six months, LoanHero has made thousands of loans to prime, mid-prime and sub-prime consumers, all in a controlled rollout to five states and a select group of 100 merchant partner locations. Over the past year, LoanHero has tripled its staff and raised an additional $20 million for the purpose of offering balance-sheet financing. With the support of Alsop Louie Partners and Mucker Capital, LoanHero anticipates more than tenfold growth in its loan portfolio over 2016. The company will serve consumers nationwide and lend across multiple verticals including furniture, auto repair, home improvement, and alternative health.
“We’ve seen meaningful growth since we launched in April, and we have validated the problem consumers and merchants have in securing capital from traditional sources,” added Steve Connolly, CEO of LoanHero. “The online lending space is booming, and partnerships are the name of the game. LoanHero has not only found lenders across the risk spectrum to accompany our balance sheet, but we’ve also surfaced a new customer acquisition strategy for consumer lending by targeting the consumer at the point of sale. It is now clear that we are filling a meaningful gap in the marketplace.”
“LoanHero’s impressive growth demonstrates that the company has solved significant problems in point-of-sale lending,” said Will Hsu, co-founder and Managing Partner at Mucker Capital. “The team has built a seamless loan origination platform that will differentiate LoanHero from competitors as it scales nationwide.”
“We love companies that disrupt entrenched players and delight their customers; usually we have to choose, but LoanHero gave us a chance to invest in a company that does both,” said Stewart Alsop, founder at Alsop Louie Partners. “By giving consumers their optimal choice of credit options within seconds at the point of sale the LoanHero platform delights both consumers and merchants alike. LoanHero is poised to help millions of consumers lower their borrowing costs, while increasing the velocity and simplicity of transactions for their merchants.”
LoanHero has developed an innovative loan origination platform that brings marketplace lending to the point of sale. LoanHero provides better financing options for consumers purchasing goods and services, including furniture, home improvement, auto repair, and elective healthcare. Through the integration of strategic lending partners complementing their own balance sheet, LoanHero is able to offer instant decisions and the most competitive loan product available for prime to sub-prime consumers, all on one streamlined platform. LoanHero is an EvoNexus portfolio company located at 4225 Executive Dr, La Jolla, CA 92037. To learn more about LoanHero and stay up to date on future updates, visit www.loanhero.com.
About Alsop Louie Partners
Alsop Louie Partners is an early-stage technology venture capital firm founded in 2006 by Stewart Alsop and Gilman Louie. Located in San Francisco, the firm focuses on disruptive and innovative technologies, and has made investments in the areas of cyber security, predictive analytics, education, and entertainment. Some of the companies the firm has led investments in include Twitch, Netwitness, Keyssa, Cleversafe, and Lookingglass Cyber Security. For more information, please visit www.alsop-louie.com.
About Mucker Capital
Mucker Capital invests in seed and “pre-seed” stage companies building defensible and scalable businesses in Internet software, services and media. The firm partners with exceptional entrepreneurs who have deep domain expertise, with a focus in the greaterLos Angeles area. Mucker Capital goes beyond funding to work side-by-side with entrepreneurs, providing support and resources in critical areas like product development, customer development, business development, operational infrastructure, and recruiting. The partners and the Mucker Capital network provide a wealth of experience and expertise to help their portfolio companies succeed.