- The round led by SoftBank Capital, with additional participation from TCW/Craton and Lumia Capital.
- Existing investors including BlueRun Ventures, David Bonderman, Warren Stephens, the UPS Strategic Enterprise Fund, Mohr Davidow Ventures, Jim McKelvey (the co-founder & director ofSquare) Thomvest Ventures and SV Angel.
- Total equity raised by Kabbage to $106 million.
- This news follows Kabbage’s announcement one month ago of a $270 million credit facility.
- “Kabbage has pioneered 21st century business financing by collapsing the time it takes to obtain a loan from weeks to a few minutes, which is just the beginning.” said Kathryn Petralia, Co-Founder and COO at Kabbage. “SoftBank has deep experience in scaling high growth companies both domestically and internationally. We will leverage the SoftBank investment to continue to revolutionize business financing with rapid product innovation, partnerships that provide the power of the Kabbage platform to third parties, and geographic expansion — all geared to dramatically expand access to capital to businesses everywhere.”
- Kabbage (@KabbageInc), which opened three years ago, is a platform for online merchants to borrow working capital.
- Founders: Rob Frohwein, Marc Gorlin, Kathryn Petralia
- They provide capital to small businesses (so far $250 mill) that have become unprofitable for traditional banks to target.
- “Built on the idea of big data and the fact that many of these businesses are already primarily online operations, Kabbage takes into account datapoints not just from a company’s balance sheet but also their performance across different sales channels, when evaluating a loan or repayment schedule. Repayments and interest are calculated on a basic sliding scale, depending on the amount and the period over which you will repay.” -Tech Crunch
- “World’s Top 10 Most Innovative Companies in Finance” by Fast Company & a “Forbes Top 100 Most Promising Company”.
- SoftBank Capital makes early and growth stage investments in companies that connect people, devices and the world.
- Invest in consumer and enterprise mobile, online advertising, ecommerce, social media and cloud computing.
- Have been making investments since 1995, with recent exits including Bluefin Labs, Buddy Media, Hyperpublic, Huffington Post, OMGPOP, Pivot and ZipList.
- From Kabbage
- The Wall Street Journal
- Clean Tech Finance
- Atlanta Business Journal (great general Q & A with Kabbage)
[Photo Credit: http://media.bizj.us/view/img/2174521/kabbage*xx4256-2394-0-219.jpg]