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Online lending tech firm Orchard Platform raises US$30m
[NEW YORK] Orchard Platform, which provides technology and infrastructure to online lenders, said on Thursday it raised US$30 million in a recent round of funding, becoming the latest marketplace lending company to attract investment.
The New York-based company said venture capital firm Thrive Capital led the round and new invesors also included former Goldman Sachs Group Inc president Jon Winkelried, Victory Park Capital and Thomvest Ventures.
Orchard's existing investors include former Thomson Reuters Corp CEO Tom Glocer and ex-Morgan Stanley CEO John Mack as well as venture firms Spark Capital, Canaan Partners, QED Investors, NYCA and Conversion Capital, who all also participated in the round.
The latest raise brings Orchard's total investment to US$44.7 million. "Marketplace lending has been validated as kind of the future of how credit is going to be extended," Orchard CEO Matt Burton said in an interview. "Investors have been embracing companies in the space." The number of online lenders to consumers and small businesses has expanded rapidly in the last several years as an alternative to traditional banks. New regulations following the financial crisis have reduced the ability of banks to lend in certain areas.
Investment in the space has also taken off rapidly following the IPOs of LendingClub Corp and On Deck Capital.
Earlier this week, student lending platform CommonBond said it had raised US$35 million.
Small business lender Bond Street said in June it had raised US$110 million in a mix of debt and equity funding.