WASHINGTON, Jan. 24, 2018 /PRNewswire/ -- StreetShares, Inc., the leading small business funding and government contract financing company serving the military and veteran market, announced today it has completed its Series B funding round, raising $23 million in fresh equity capital. The Series B round was led by a $20 million investment from Rotunda Capital Partners, LLC, and included an additional $3 million from existing investors, including veteran-focused venture firm, Stony Lonesome Group.
"StreetShares uses technology to serve the business funding and alternative investment needs of America's heroes and their communities," said Mark L. Rockefeller, CEO of StreetShares. "This injection of capital allows us to continue to provide red-carpet treatment to our very special members— the veteran entrepreneurs, small business owners, government contractors, and impact investors—that make up our country's next 'Greatest Generation.'"
StreetShares' technology captures the social loyalty that exists within the military and veteran community and harnesses that trust to lower risk in financial transactions. The StreetShares' model provides lower costs to borrowers and higher returns to investors.
StreetShares won the 2017 Professional Services "Innovator of the Year" Award in Washington, D.C. for its technology and three unique product lines:
- Small Business Funding: Small business loans, business funding, and lines of credit that are mobile, digital, clear, transparent, and human. StreetShares never charges application fees or pre-payment penalties.
- Government Contract Financing: StreetShares has reinvented receivables financing and invoice factoring for government and commercial contracts. StreetShares provides funding at every stage: from pre-award to "mobilization loans" to traditional receivables financing.
- Alternative Investments: Do good; do well. StreetShares investors earn solid returns and support veterans, their families, and the main street business community with a first-of-its-kind impact investment product, Veteran Business Bonds.1
"We're thrilled to join StreetShares as a strategic business partner and investor," said John Fruehwirth, managing partner at Rotunda. "Mark L. Rockefeller, Mickey Konson, and the entire team at StreetShares have really been innovators in the small business lending and investing space. Our team at Rotunda is proud to join StreetShares and its mission to improve access to credit for veteran-owned small businesses while providing unique investment opportunities to their supporters."
"Securing this funding is a huge step in StreetShares' growth and we're excited to have the support from a great firm like Rotunda Capital," said Mickey Konson, former Capital One senior executive and COO of StreetShares. "StreetShares is proud to fuel this special class of great American small businesses, and our partnership with Rotunda demonstrates that we are just getting started."
Brian Burke of Cooley LLP acted as counsel for StreetShares.
StreetShares offers unique financial solutions for America's heroes and their communities. StreetShares' technology captures the social loyalty that exists within the military community and harnesses that trust to lower risk in financial transactions. StreetShares provides a suite of specialty finance products focused on the military and veterans market, including small business funding, lines of credit, and alternatives to VA small business loans for vet-owned businesses. StreetShares is also a factoring company offering invoice factoring and account receivables financing for the government contract (GovCon) community, as well as the StreetShares Patriot Express® program. StreetShares offers alternative investments, including a veterans social-impact investing product called Veteran Business Bonds. StreetShares is veteran-run and located outside of Washington, D.C. To learn more, please visit: StreetShares.com.
About Rotunda Capital Partners
Rotunda Capital Partners is a private equity firm that invests equity capital in family/founder run firms within its four core verticals – financial services, distribution, logistics and business services. The firm uses a rigorous approach to identify market-leading companies with identifiable growth opportunities and capable management teams. It focuses on Building Better Businesses through its Rotunda Performance System by actively providing guidance and drawing on deep industry and financial relationships to contribute to the successful execution of the portfolio company's strategic plan. Rotunda Capital has completed 11 platform investments and realized four successful exits. For more visit www.rotundacapital.com
1StreetShares Notes are a non-deposit investment product. Not FDIC insured. No guarantee. May lose value. See offering statement for more details.
Contact: Shauna Vo Pulayya, 571-325-2966, [email protected].
SOURCE StreetShares, Inc.