Prosper Marketplace President Ron Suber is among the investors in ApplePie Capital’s recently closed $6 million Series A round. He is joined by Venture Partners, Freestyle Capital and QED Investors. It brings ApplePie Capital’s total equity raise to nearly $10 million.
ApplePie Capital focuses exclusively on the franchise loan industry, a market with a $45 billion annual capital demand. Investors can either buy whole or fractional loans.
ApplePie seeks to develop working relationships with stable, well-established franchise brands. Using an automated online application process and a proprietary model incorporating a combination of borrower data and historical brand performance, ApplePie Capital confirms eligibility within two business days, makes a firm commitment within five business days and provides funds within 30 days.
“Franchise performance data is a unique information layer that ApplePie Capital understands
better than any other marketplace lender,” said Zaw Thet, Partner with Signia Venture Partners, an earlier stage investor. “ApplePie goes deep with franchisors across both quantitative and qualitative measures to develop a robust analysis of risk, and the early demand that ApplePie has seen from institutional investors is a strong validation of their approach.”
In less than four months ApplePie Capital has seen more than $40 million of demand. Participating brands are AdvantaClean, Brain Balance Achievement Centers, Brightway Insurance, Capriotti’s Sandwich Shop, Einstein Bros. Bagels, Fast-Fix Jewelry and Watch Repair, Marco’s Pizza, Nothing Bundt Cakes, Phenix Salon Suites, RNR Tire Express, and Sola Salon Studios.
“We see the development of marketplace lending as very helpful to many franchisors,” said
Marco’s Pizza CFO, Ken Switzer. “ApplePie Capital fills a need and we see demand for this type
financing growing very rapidly.”
ApplePie Capital also announced a raise of more than $28 million in debt capital commitments from institutional and individual investors earmarked to funding loans.