Cerebro Capital, a digital commercial loan marketplace that allows middle-market borrowers to analyze, manage and source credit facilities, closed its second round of venture capital. Co-led by Ulu Ventures and Grotech Ventures, the round closed on March 26. Sterling Partners returned as an investor and Inner Loop Capital and Point Field Partners also participated in the round.
Designed for middle market corporate borrowers and lenders, Cerebro addresses two key components of the commercial loan process: sourcing corporate loans and managing loan covenant compliance. The capital from this round will be deployed to further scale Cerebro’s online loan marketplace and broaden its capacity to streamline the placement of corporate debt transactions.
Connected to more than 650 bank and non-bank lenders, Cerebro’s platform experienced triple digit growth in Q1/20.
“We are thrilled our platform is being recognized across the country with prominent West Coast and East Coast investors, in the form of this new capital raise,” Matthew Bjonerud, founder and CEO of Cerebro Capital, said. “We exceeded our expectations in the dollars raised and at a critical juncture in our growth path as many of our customers navigate a volatile post-COVID-19 economy. With this capital, we will continue to make it easier and faster to receive great terms on corporate loans including the new MSLP and PPP loans.”
Corporate borrowers have used Cerebro’s platform to run more than $740 million in loan RFPs since the company launched in October 2017. In Q1/20, borrowers used the platform to predict structure and terms for loans totaling more than $800 million. Cerebro also has diversified its lending sources beyond commercial banks to include asset-based lenders, mezzanine funds, business development companies and venture debt lenders.
“The mid-market credit space is massive and an important part of how the U.S. economy functions,” Clint Korver, managing director at Ulu Ventures, said. “It’s a market often bound by geography and inefficient for borrowers and lenders. We know Cerebro has the potential to unlock significant efficiencies and savings on both sides of the equation, making the platform more powerful, and its future that much brighter.”