Harvard Business School has released a comprehensive report on the state of small business lending and its current landscape; Lend Academy provides more details in their article with insight from author, Brayden McCarthy of Fundera; paper includes details on the evolution of online lending within the small business lending market; goals of the paper include laying a foundation for regulatory reform and exploring how online small business lenders can partner with banks. Source
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Kabbage is reportedly considering an acquisition of small business online lender OnDeck; S&P Global analyzes a potential merger between the two firms which has high value deal prospects including combined 2016 SME loan originations of $3.82 billion, costs savings from similar balance sheet and securitization funding sources, and similar success in technology licensing partnerships, overall resulting in increased margins, earnings and more competitive terms to borrowers; the valuation metrics and negotiation factors are the main constraints to a potential deal; the minimum enterprise value reported by S&P Global is $291.7 million which is below its current market cap of $372.4 million and far below its original IPO valuation of $1.3 billion; key factors to watch for 2017 will be OnDeck's forecasted EBITDA and fundraising obtained by Kabbage. Source
Growth Street has originated over $67.44 million since its launch in November 2016 with a new CEO and two new executive hires; the firm has now reported 600 new investors on the platform in the five months since its launch; Growth Street provides financing for UK SMEs; the short term financing options appear to be a factor attracting investors; the platform matches borrowers and lenders for 30 days and also allows investors to withdraw funds with notice of 30 days. Source