Fundera, the lending match-maker for SMBs, has helped secure funding for over 300 small businesses, with more than $12 million in loans funded.
The company originally launched in February 2014 as a service that paired SMBs looking for a loan with the lenders who could help them out. In the beginning, it was simply a matching service, but over the course of 2014 the company has transformed into an end-to-end product that handles every step of the process.
On average, it takes about 16 days for a company to get started on Fundera and secure funding. The company was founded by GroupMe founder Jared Hecht after his cousin, a restaurant owner, was having trouble securing a loan for his business. Looking to simplify the process, Hecht went from the messenger business into the world of finance.
Fundera makes money by taking a 1.5 percent to 3 percent transaction fee for each loan that successfully goes through. That slice comes from the lending side entirely, making the product entirely free to use for SMBs. Hecht told TechCrunch that the company received funding from QED Investors in late 2014, but wouldn’t disclose amount.
In February, Fundera received $3.4 million in funding from Khosla, First Round Capital, Lerer Ventures, SV Angel, and various angel investors including Strauss Zelnick, Rob Wiesenthal, David Rosenblatt, and David Tisch.
Moving forward, Hecht and Fundera are focused on continuing to improve on the customer service experience and scaling out to help even more SMBs secure loans.
Learn more about Fundera here.