Lendio Explained

Lendio
Industry:Small business loans
Predecessor:FundingUniverse
Successors:-->
Founded:2011
Founder:Brock Blake, CEO[1]
Trent Miskin, CGO
Brett Child, EVP Sales
Areas Served:-->
Key People:Chad Iverson, COO

Ben Davis, Chief Revenue Officer
Profit:-->
Profit Year:-->
Owners:-->

Utah-based Lendio[2] (formerly Funding Universe), founded in 2011 by Brock Blake and Trent Miskin, is a free online loan marketplace in the U.S. targeting small business owners.

History

Lendio's predecessor, Funding Universe ()[3] [4] was a pay-to-pitch[5] on Inc.'s list of 'the fastest-growing privately held companies.'[3] They stopped charging "amid the criticism."[6]

The name FundingUniverse was an outgrowth of the FundingUtah that Blake and Miskin began in 2006.[7]

Founded in 2006 as FundingUtah,,[7] it became FundingUniverse and, by 2011, Lendio.[8] CEO Blake[9] [1] has served in that role to each.

Founded in 2011, Lendio facilitated its first loan in Q4 2013. In 2014, it coordinated $12.4 million in funding to more than 400 small business owners. By 2015, the company had expanded to $128 million in financing,[10] helping more than 5,100 small business owners in all 50 states.

In October 2016, Lendio raised $20 million[11] in funding from Comcast Ventures and Stereo Capital with participation from existing investors Napier Park, Blumberg Capital, Tribeca Venture Partners, and North Hill Ventures. By 2016, it had delivered over $250 million in total funding[12] to more than 10,000 small businesses.

Launched[13] in early 2017, the Lendio Franchising program is the world's first franchised online lending marketplace; it has since grown to 100 franchise territories nationwide, and facilitated $430 million to over 7,000 small businesses[14] across the U.S.

In Q2 2018, Lendio reported[15] 90% year-over-year revenue growth. In October 2018, Lendio announced it had serviced $1B of total loans to over 51,000 small businesses across the country, providing $3.8B in economic output.

In April 2018, Lendio announced[16] its lender turndown program, which allows lending partners to offer Lendio's marketplace of loan options to small business owners that do not fit the lender's credit box.

Lendio also works with the following organizations to better serve the small business community:

In Q1 2020, Lendio announced it had secured $55M in a Series E Funding Round.[18] In the first month of the Paycheck Protection Program during the COVID-19 pandemic, Lendio onboarded hundreds of lenders to help facilitate what would eventually amount to $8 billion in loan approvals for over 100,000 businesses.[19]

Lending platform

Lendio's platform reviews metrics including the business's financial projections, use of funds, industry, and monthly revenue to find loans option for borrowers. The platform uses a series of questions to predict which loan type will most likely match a business owner's qualifications. Each borrower is also assigned a funding manager to answer questions through the entire process. Lendio's online application process takes an average of 15 minutes to complete, compared to an average of 25 hours filling out traditional lending applications.[20]

Small business owners are offered financing options including credit cards, lines of credit, short-term specialty loans and long-term traditional loans.

Awards

Notes and References

  1. News: . Small-Business Relief Effort 'a Mess' . April 2, 2020.
  2. News: . When Should a Small Business Hire a Finance Chief? . Darren Dahl . October 26, 2011.
  3. Forbes. Funding Universe Matches Entrepreneurs With Loans. Is The Advice Worth The Price?. Helen Coster . February 25, 2011.
  4. News: Wall Street Journal (wsj.com). Web Sites Help Bring Together Entrepreneurs and Investors . $375,000 in angel investor backing .. through FundingUniverse. Daniel Hausmann . January 10, 2008.
  5. News: . Free Pitches? Entrepreneurs and Big Investors Push Back Against Pay to Pitch . While a few companies succeed in securing a check, most go home empty-handed. . Ty McMahan . August 16, 2010.
  6. News: Wall Street Journal (wsj.com) . Services Let Start-Ups Pitch to Angels, for Free . amid the criticism. ... FundingUniverse LLC stopped charging . June 17, 2010.
  7. Web site: This Lendio CEO Started a Billion-Dollar Business That Helps Other Entrepreneurs Get Their Start. Gabrielle Olya . May 17, 2019.
  8. Web site: . Lendio Scores $2 Million More To Assist Business Owners In Securing Loans . June 2, 2011.
  9. News: The New York Times. Small Businesses Seek a Crisis Lifeline Beyond Loans. March 23, 2020.
  10. Web site: Lendio Momentum Soars in 2015 with Record Revenue and Customer Growth. PRWeb. 2018-11-02.
  11. Web site: Pymnts . Lendio's Latest Round Led By Comcast . PYMNTS.com . 2016-10-26 . 2019-03-27.
  12. Web site: Lendio Tops $250 Million in Funding to 10,000-plus Small Businesses. PRWeb. 2018-11-02.
  13. Web site: Lendio Unveils New Marketplace Lending Franchise Program. 1 March 2017. Crowdfund Insider.
  14. Web site: Lendio Offers Franchise Opportunities to Serve the Small Business Financing Market. Rob. Starr. 6 October 2018.
  15. Web site: Lendio Reports Q2 Results: 90% Year-Over-Year Revenue Growth - Markets Insider. finanzen net. GmbH. markets.businessinsider.com.
  16. Web site: Lendio's New Turndown Program Grows. Todd. Stone.
  17. Web site: Lendio Partners with Ocrolus to Automate Bank Statement Analysis. Lendio. www.prnewswire.com.
  18. Web site: Lendio Closes $55M Series e Funding Round Led by Mercato Partners. 27 February 2020.
  19. Web site: Lendio's Network of Lenders Secure PPP Loan Approvals. 19 August 2020.
  20. Web site: The State of Small Business Lending: Innovation and Technology and the Implications for Regulation. Karen Gordon Mills. Brayden McCarthy. Harvard Business School. 2016-11-29. 2018-11-02.
  21. Web site: Best Places to Work.
  22. Web site: Lendio Co-Founders Brock Blake and Trent Miskin Named as EY Entrepreneur of the Year® 2020 Utah Region Award Winners. 7 October 2020.
  23. Web site: Financial Services Franchises - Page 1.
  24. Web site: These are Utah's fastest growing companies. 3 September 2020.
  25. Web site: The Fintech 250: The Top Fintech Companies of 2020.