Online Lenders Find VC Capital Hard to Come By

U.S. fintech funding reached its highest level in 5 years in 2018 but the online lending market is finding it hard to secure venture capital; established lenders on the one hand are not having trouble but emerging lenders are not able to raise the capital they need; data released from GLI finance highlights these issues as the firm reported a profit of $133,630 in 2017 but had losses of almost $3mn in 2018; the firm also revealed a $25.93 million write-off across eight portfolio platforms last year, which they attributed to problems obtaining growth capital; the collaboration with banks has started to help platforms as they have found an appetite for their technology to help banks to become for advanced. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.