AUSTIN, Texas, Nov. 15, 2018 /PRNewswire/ -- Self Lender, a leading fintech startup offering Americans a way to build their credit while also saving money, today announced a $10 million round of Series B financing, led by Altos Ventures, with additional participation from Silverton Partners, Accion Venture Lab and others. The funding will be used for expanding the team, building new products and increasing marketing efforts.
According to the Center for Financial Services Innovation, there are approximately 53 million people with no to low credit in the U.S. The funding validates Self Lender's commitment to helping lay the foundation for people's financial journeys through its unique technology and strong team.
With more than 175,000 consumers and $140 million in CD-secured loan originations, the company has quadrupled its growth in the past year by offering a way for consumers to build credit. Self Lender works in three steps:
First, Self Lender customers get a small credit builder loan that's held in a CD (certificate of deposit) for safekeeping.
Next, customers repay the loan on a monthly schedule while payments are reported to the credit bureaus.
Finally, once the obligation is paid, the customer has established credit history and the CD unlocks with the customer's money.
To date, Self Lender customers have seen an average increase of 45 points to their credit score, with new-to-credit users reaching an average score of 670 starting from nothing. Individual results vary.
"We believe in the truly meaningful financial solutions Self Lender is offering to U.S. consumers and have been continually impressed with their core value proposition," said Anthony Lee, Managing Director at Altos Ventures. "We have a shared vision in empowering people to take control of their financial lives so they can ultimately better control their own destinies. We're looking forward to the continued success of Self Lender."
"We are incredibly grateful for the commitment from Altos Ventures and our ongoing support from existing investors," said James Garvey, CEO of Self Lender. "The cost of having poor credit in the U.S. is high and unfortunately hits those who are most vulnerable in our country the hardest. This backing will keep us steadfast in our goal of helping the millions of Americans with no credit score or poor credit history achieve financial stability and peace of mind."
About Self Lender Self Lender is a leading fintech startup offering Americans a way to build their credit without the use of credit cards while also saving money. The company has helped over 175,000 people improve their financial journey with a credit-builder account, a simple way to build credit and save money at the same time. For more information, visit www.selflender.com.
About Altos Ventures Altos Ventures is a global venture growth investor dedicated to backing exceptional founder-led companies. Altos takes a different approach to building companies, focusing on pragmatic growth and patient partnership. Based in Silicon Valley, Altos manages a portfolio of fast-growing companies that together generate billions in revenue and employ over 10,000 people around the world. For more information, visit www.altos.vc.
Source: Center for Financial Services Innovation (CFSI) 2017 Financially Underserved Market Size Study