Demand for consumer loans and credit is on the rise, and venture investors are backing a new class of online lenders to meet this demand, disrupt traditional banking and make a windfall.In the most recent deal in this space, AvantCredit Corp. said it has raised $75 million in a Series C round of funding led by Tiger Global Management. The company also attained a $200 million credit facility led by Victory Park Capital.
Congrats to Al Goldstein and the team in Chicago. I’ve gotten to know Al and have a tremendous amount of respect for him. I had the chance to invest in the Series B (and probably should have!) #FOMO
A sliced-and-diced package of peer-to-peer loans has secured a credit rating from Standard & Poor’s, the first time a major credit rating agency has agreed to formally evaluate a securitisation from the fast-growing “P2P” sector.
File this under: It’s still not easy to be a payday lender. Wonga posited itself as the clean, friendly and respectable online payday lender but failed to keep many of those promises and is now being forced to retrench under new management. I certainly hope they can complete their turn around successfully.