Ready for our next asset class

February 22, 2022

We always know how to move quickly around here, that's for sure! For something that was just an idea a few weeks back to a full fledged launch of a brand new product offering last week, the pace at which we ship is remarkable to see. As we had outlined in the last all-hands, our next asset class after fintech lender finance is going to be venture loans. Instead of providing financing to lenders who then use it to expand their loan portfolios, we are now financing individual venture-backed companies who can use our capital to grow and scale their business to reach their next round of financing.

There's a few reasons why this asset class is a great next choice for us. As a VC-backed company ourselves, we have access to and know hundreds of VCs, all of whom would find an offering like this quite compelling for their portfolio companies. Unlike traditional venture loans from the likes of Silicon Valley Bank and TriplePoint, ours have limited dilution which makes VCs all that much more willing to recommend us as an option over the alternatives. This makes acquiring new borrowers that much easier. Additionally, our focus to date on lenders naturally limits our audience. There are approximately 3,000 fintech lenders in the world today and between our current clients and our pipeline, we already know ~10% of the market. The total market size of venture-backed companies is in the tens of thousands and it paves the way for us to do single company financing. As you saw in our Series B presentation, our growth aspirations are heavily tied to our ability to finance single company borrowers, whether it's in $900B mid-market loans or the $2.4T commercial lending market. This puts us on fantastic footing to take our platforms to the next level.

Let's go close our own venture loan and show the market what we can do 💸