Brian Zwerner of Kensington Blake Capital Recent FinTech Capital Raises

November 21, 2015

Kensington Blake Capital’s Managing Principal Brian Zwerner serves as a Senior Advisor to Provider Web Capital, a leading finance provider for small businesses in the healthcare sector. Zwerner provides commentary on the recent capital injections to FinTech platforms across consumer and small business lending. Money has been flooding into the sector as investor look to capitalize on new business models that look to unseat the banks across the United States.

This week alone saw two large capital raises in the consumer finance sector. Earnest is a platform focused on consumer loans, with recent success in the student loan sector. They just completed a $275MM raise, with $75MM in equity from Battery Ventures and $200MM in debt from insurers led by New York Life. In addition, another consumer loan platform called Avant raised $175MM in a private securitization this week from Victory Park and KKR. This comes only two months after Avant raised $325MM with a valuation over $1 Billion from General Atlantic and other private equity groups.

The small business loan space has also seen capital pouring into larger platforms. Kabbage, based in Atlanta, Georgia, recently raise $135MM from a collection of investors led by Reverence Capital Partners and including a number of foreign banks including ING, Santander, and Scotiabank. Kabbage also increased the size of their credit facility to $900 Million to increase their lending capacity to accommodate recent growth.

The FinTech market has seen a number of smaller raises completed by other FinTech platforms. Recently Orchard Platform raised $30 Million. Orchard is a services provider for marketplace lenders and investors. CommonBond is a student loan platform that raised $35MM, and Fundbox raised $50MM for the small business loan sector.

Brian Zwerner works as a Senior Advisor to Provider Web Capital, a high growth FinTech finance company. Provider Web Capital works with doctors, mental health professionals, home healthcare agencies and many other medical small businesses. They offer financing structures from $10,000 to $250,000 or more to their clients, with a fast and free application process. Clients receive funds within two business days, and they make repayment over time based on receipt of funds from their third party payer sources such as Medicare, Medicaid, and private insurance companies. This structure allows Provider Web to live by the mantra: “we get paid when you get paid”, a significant improvement of the daily fixed ACH structure offered by most competitors. Keep an eye on Provider Web Capital.

Article on Kabbage capital raise:

http://techcrunch.com/2015/10/14/kabbage-loans-unicorn/

TechCrunch on Earnest:

http://techcrunch.com/2015/11/17/lending-company-earnest-raises-275-million-as-fintech-remains-in-the-spotlight/#.tyr06et:5vpi

Article on Victory Park and Avant:

http://www.victoryparkcapital.com/news/news_2015_vpc_kkr_lead_an_inaugural_175_million_asset_backed_securitization.shtml

Fortune on Avant:

http://fortune.com/2015/09/29/lender-avant-300m-unicorn/

 

 

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