Online lender Borro garners $16 million funding round

Online lender Borro has announced the successful completion of a $16 million Series E funding round.

The backers are OurCrowd, Canaan Partners, Rocket Internet AG and Augmentum Capital.

OurCrowd is a hybrid venture capital/equity crowdfunding platform for accredited investors looking to back Israeli and global early stage companies. Their $6 million stake in the Borro deal makes it the largest single equity crowdfunding round ever completed.

“In under two years, OurCrowd went from participating in early seed rounds to now successfully leading a $16M dollar major funding round,” OurCrowd Founder and CEO Jon Medved said. “Borro … is redefining the Fintech industry.”

Borro Founder and CEO Paul Aitken sees OurCrowd’s contribution as an important milestone.

“Their ability to lead this important funding round has proven that equity crowdfunding has indeed come of age. I was excited by the quality of the investors they have brought to the table.”

An early investor in Lending Club, Canaan Partners is a global venture capital firm investing in technology and healthcare startups.

Berlin-based Rocket Internet AG identifies and builds proven internet business models and transfers them to new markets, where they then attempt to scale them into profitable ventures.

Augmentum Capital was created in London, England in 2009. The Rothschilds are among the backers of their initial fund.

The UK and US-based Borro is in many ways the Internet’s version of a high-end pawn shop. Prospective borrowers apply online or with a telephone call. The applicant then puts up luxury items like expensive cars, jewelry, antiques, art, handbags and even wine as collateral and either delivers the items to a Borro location or arranges shipping. Upon receipt of the item and following a final inspection Borro sends a loan offer to the applicant and then wires the money upon acceptance of the offer.

Borro lends up to $2,000,000 at a time with a 70 percent maximum loan-to-value rate. Monthly interest rates range between 2.99 and 4.99 percent, with an initial fee between three and five percent charged for storage and insurance-related costs.

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