Dallas-based DriverUp Bolsters Lending marketplace With $20M series B

 September 24, 2015

DriverUp

DriverUp, a Dallas, TX-based totally online marketplace for investing in auto loans that launched in February, has acquired a $ 20 million sequence B funding spherical that it plans to make use of to bolster its marketing and product construction efforts.

DriverUp offers buyers get entry to to loans utilized by shoppers to buy automobiles. these buyers are generally teams comparable to hedge money, endowments, family workplaces, and high net value people—referred to as authorized buyers—who are seeking for to lend their cash in ways that present better returns with out necessarily having greater possibility.

traders can expect returns of 8 percent to 10 p.c, according to the corporate. DriverUp, which says the auto lending business is price $ 1 trillion, makes use of tool and knowledge analytics to assist secure and service the loans for buyers. A minimum $ one hundred,000 funding is required.

Dallas-primarily based uniqueness finance firm Sierra Auto Finance runs DriverUp. both buyers and car sellers can sign up via DriverUp’s site to use its information analytics software.

The $ 20 million sequence B used to be led with the aid of new investor SF Capital staff, a private investment firm that makes a speciality of both equity and debt. DriverUp up to now raised a $ 50 million series A that was once led through Emerald development Managers and RRE Ventures, who additionally participated within the series B.

online marketplaces for investing in and obtaining loans have change into a long way extra popular all over the closing two years, from public firms comparable to Lending club and OnDeck to private operators similar to Fundbox and Prosper.

Neil Wolfson, president of SF Capital crew, is joining the company’s board of directors, a remarkable move as a result of Wolfson is also on the boards of various different lending-related companies, including OnDeck. SF Capital participated in OnDeck’s $ 4 million series C in 2011 and the company went public in 2014.

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