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.

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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."

"Small and medium sized businesses are the lifeblood of the US economy and we are in an environment where 84% of SMBs looking for financing report having unmet financing needs," said Eric Liaw, principal at IVP. "IVP is excited to partner with On Deck to help provide thousands of small and medium sized business owners with the capital they need to invest in their operations, grow their businesses, and create new jobs."

To continue to manage its explosive growth, On Deck recently opened regional offices in Atlanta, Sarasota, Chicago and Los Angeles. In 2013, the company will open a western region office in Denver, and move into larger office spaces for its New York City headquarters and Arlington, VA offices.

Victory Park Securities acted as financial advisor to On Deck.

To learn more about On Deck, please visit www.ondeckcapital.com or follow On Deck on Twitter: @OnDeckCapital. If you are interested in speaking with CEO Noah Breslow regarding small business in America, please contact [email protected].

About On Deck
Launched in 2007, On Deck uses data aggregation and electronic payment technology to evaluate the financial health of small and medium sized businesses and efficiently deliver capital to a market underserved by banks.  Through the On Deck platform, millions of small businesses can obtain affordable loans with a fraction of the time and effort that it takes through traditional channels.  The company's proprietary credit models look deeper into the health of businesses, focusing on overall business performance, rather than the owner's personal credit history.  The On Deck system also provides a critically needed mechanism for financial institutions and other business service providers to efficiently reach the Main Street small business market.

On Deck is financed by some of the nation's leading venture capital firms, including SAP Ventures, Contour Venture Partners, First Round Capital, Khosla Ventures, RRE Ventures, Village Ventures and Institutional Venture Partners. For more information, please visit: www.ondeckcapital.com.  

About Institutional Venture Partners (IVP)
With $4 billion of committed capital, Institutional Venture Partners (IVP) is one of the premier later-stage venture capital and growth equity firms in the United States. Founded in 1980, IVP has invested in over 300 companies, 93 of which have gone public. IVP is one of the top performing firms in the industry and has a 32-year IRR of 43.2%. IVP specializes in venture growth investments, industry rollups, founder liquidity transactions and select public market investments. Since its inception, IVP investments include such notable companies as ArcSight (HPQ), Buddy Media (CRM), ComScore (SCOR), Concur Technologies (CNQR), Dropbox, Fleetmatics (FLTX), HomeAway (AWAY), Juniper Networks (JNPR), Kayak (KYAK), LegalZoom, LifeLock (LOCK), Marketo, MySQL (ORCL), Netflix (NFLX), Polycom (PLCM), Seagate (STX), Shazam, Synchronoss (SNCR), Tivo (TIVO), Twitter and Zynga (ZNGA). For more information, visit http://ivp.com or follow IVP on Twitter: @ivp

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SOURCE On Deck