Daily News: August 22, 2014

Victory Park Capital to Invest in Upstart

Victory Park Capital announced it will invest $100 million in Upstart loans over the next two years.

Upstart is committed to providing fairly priced loans to quality borrowers who may not have the ability to secure a loan from a traditional lender. Since inception earlier this year, more than 500 Upstart loans, totaling more than $7.5 million, have been originated. Upstart currently receives more than 1,000 loan applications daily and while historical data remains limited, Upstart has yet to experience a delinquent payment.

“Based on Upstart’s successful launch, innovative management team, and our experience in the specialty finance industry, we believe Upstart is well positioned for success as the platform scales over time,” said Tom Welch of VPC. “We are excited to partner with the Upstart team and are confident they will succeed in a market that continues to be underserved by traditional providers of consumer credit.

Dave Girouard, founder and CEO of Upstart, added, “We are excited to announce this partnership with a team as experienced in this sector as VPC. This lending facility will go toward serving the continued need for capital by our customers, as well as allow us to expand our product into new markets for individuals that lack the credit score needed to receive a loan from conventional sources.”

Founded by ex-Googlers, Upstart goes beyond the FICO score to finance people based on signals of their potential, including schools attended, area of study, academic performance and work history.