LendKey (formerly Fynanz), the cloud-based lending technology company located in New York City and Cincinnati, announced the closing of an additional $12.5 million in Series B venture funding led by new investors Updata Partners and TTV Capital, as well as existing investors Draper Fisher Jurvetson and Gotham Ventures. LendKey, which was founded in 2008 as a private student lending platform for financial institutions, will use the funds to expand its lending platform into new asset classes and accelerate the growth of its lending clients.
“LendKey has grown to 250 lending partners and $400 million in private student loan and private student loan consolidation originations in the past three years,” said Vince Passione, CEO of LendKey. ”We are pleased to scale our business into additional asset classes with the support of Updata Partners and TTV Capital, as well as the continued confidence from our existing investors at Draper Fisher Jurvetson and Gotham Ventures.”
“In a market where federal student loans cover only a fraction of the cost of higher education, LendKey has grown substantially by allowing financial institutions to reach students in need of private loans,” said Carter Griffin, General Partner at Updata Partners. “Looking ahead, Updata believes there are virtually unlimited opportunities to connect lenders and borrowers through LendKey’s cloud lending platform.”
“LendKey has significantly grown adoption of their lending platform since our initial investment in 2010, “said Josh Stein, Managing Director at Draper Fisher Jurvetson. “We are excited about our additional investment and their continued growth with entry into new asset classes.”
The new funding is in addition to the $9.5 million in venture funding received by LendKey during their Series A round of financing, bringing the total capital raised by the company to $22 million.