It’s tough to fit a big financial injection onto its business cards, but that’s what CommonBond could be doing today.
The New York-city based student loan marketplace lender will add $35-million to its bottom line, said CEO and co-founder David Klein, thanks to “investors who share our vision.”
The Series B funding is courtesy August Capital and Nyca Partners, along with existing investors. Klein, in a release, called them “some of the best investors in fintech today.”
CommonBond will now grow its team and expand nationally as it continues to do business in a forgotten segment of the marketplace.
“We look forward to supporting the company as it continues to scale,” said Tripp Jones, a partner at August Capital who has joined CommonBond’s board.
Students — and their parents — should know CommonBond says it plans to advance more than $500-million in loans by the end of 2015 and expects to beat $1-billion in loans next year.
That’s good news for qualified investors too, who buy loans directly from CommonBond’s first-of-its-kind Investor Marketplace online.
“It’s clear to everyone that there is lots of room for innovation and improved customer experience in student lending,” noted Hans Morris, a managing partner at Nyca and a board member at Lending Club.
It’s another bullet point in a newsworthy year for CommonBond, which relies on technology and customer service, an investment-grade credit rating, and new CFO Morgan Edwards to do its business.
Not bad for a lending platform started by three Wharton MBAs with backgrounds in financial services that saves borrowers more than $14,000 on average over the life of their loans.
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