Fundera raises $3.4M in venture capital to connect New York's small businesses to alternative lenders
Fundera launched its lending platform today to connect small businesses with certified lending alternatives. The startup also secured $3.4 million in a recent venture funding, according to VentureBeat.
Investors in the said round include SV Angel, Khosla Ventures, Lerer Ventures, and First Round Capital. Angel investors Rob Wiesenthal, Strauss Zelnick, David Tisch, and David Rosenblatt also contributed to the funding, the report detailed.
Small businesses looking to secure a loan submit a filled-out application form to Fundera. The engine will then present them with a list of lenders that match their needs based on their annual revenue, accounts receivable, length of time in business, and credit score. The platform then connects the business to that lender and takes a 1% to 3% origination fee from the lending firm. During its beta phase, the New York-based startup has successfully matched more than 200 small business owners with lenders, the report explained.
According to Fundera, the platform is best suited to enterprises that are nine months old and above. These businesses include restaurants, spas, auto body shops, salons, retail stores, and dental and medical practices, VentureBeat reported.
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