Daily News: April 3, 2013

Victory Park, Thomvest Ventures Provide Facility to Kabbage

Kabbage, Inc., an online provider of small businesses financing, closed a $75 million credit facility, its largest financing transaction to date. Victory Park Capital led the debt financing, while existing equity investor Thomvest Ventures also contributed a significant amount. The debt facility will fund advances for the company’s rapidly-growing customer base and allow it to expand its reach to new customer segments and markets.

“We have followed Kabbage since its inception and have been exceedingly impressed by the power of its innovative real-time data platform and the team’s ability to scale over the last two years,” said Tom Affolter, principal at Victory Park Capital. “There is a clear void in the market as traditional financing sources remain reluctant to lend. As a firm, we are excited to provide financing to Kabbage as it is uniquely positioned to deploy this capital to meet the demand for funding from small businesses.”

Kabbage’s Data Context Engine uses persistent data connections to understand the true health of a small business throughout the account lifecycle. The company employs real-time data connections to the sources that small businesses use every day such as shipping, accounting, social media, ecommerce, payments and others.

“Kabbage’s underwriting platform and ease of use has positioned it as the leading online provider of credit solutions to small businesses,” said Peter J. Thomson, chairman of Thomvest and director of Thomson Reuters Corporation. “We are pleased to partner with Victory Park in funding the growth of Kabbage and its small business clients through this debt financing, and to share in Kabbage’s future growth as an existing equity investor.”

Thomvest’s involvement in Kabbage’s credit facility follows its investments in loans made on Lending Club’s platform.

Kabbage, headquartered in Atlanta, has pioneered the first financial services data and technology platform to provide funding to small businesses in fewer than 7 minutes. Kabbage leverages data generated through business activity such as online sales, shipping and dozens of other sources.