On Deck Secures $42 Million Series D Financing Led By Institutional Venture Partners
NEW YORK, Feb. 13, 2013 /PRNewswire/ -- On Deck ( www.ondeckcapital.com), the technology-powered Main Street lender, announced today that it has raised $42 million in Series D growth financing led by new investor, Institutional Venture Partners (IVP). Existing On Deck investors RRE Ventures, SAP Ventures and First Round Capital also participated in the oversubscribed round. The financing will enable the company to further accelerate growth through: continued technology innovation; breakthrough new product development; increased marketing to reach more small business owners; and expanded access to wholesale funding sources. Collectively these efforts will bolster On Deck's ability to connect Main Street businesses around the country with the capital they need.
On Deck's innovative technology platform is a transformative solution to America's small and medium sized business lending challenges. The company has successfully deployed $400 million directly to thousands of small and medium sized businesses that make up the growth engine of our economy. The latest funding round follows a year of record performance and the achievement of numerous milestones. In 2012, On Deck doubled its business, raised nearly $100 million in credit facility commitments jointly led by Goldman Sachs and Fortress Investment Group, tripled the number of distribution partners to 1,500 nationwide, expanded its bank partnerships and increased its industry coverage to over 700 vertical markets, serving essentially all types of Main Street businesses.In conjunction with the financing, On Deck also announced that IVP General Partner, Sandy Miller, has been appointed to the company's Board of Directors. Sandy has an extensive investor track record across numerous industries, leading investments in AddThis, Care.com, Fleetmatics, ngmoco, One Kings Lane, Vonage and Zynga. "On Deck will provide more capital to small businesses in 2013 than it did during the previous five years in total. This investment provides On Deck with greater capacity and resources to bring technology-enabled finance to the mainstream of the American small business market," said Noah Breslow, chief executive officer, On Deck. "We were attracted to IVP's 33-year track record of collaborating with pioneering technology companies, as well as Sandy's personal involvement with over 100 technology IPOs. We are thrilled to have Sandy and the entire IVP team supporting our next phase of growth." IVP General Partner Sandy Miller commented, "Led by an experienced and cohesive management team, On Deck has developed a unique and differentiated technology platform to streamline the borrowing process so that small and medium sized business owners can get approved for the capital they need in a matter of minutes. We are very excited that our investment in On Deck is the first from our new fund, IVP XIV."
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