This has been a big week for online lending fundraising! San Francisco based lending service, Fundbox, raised $50m in equity financing, led by Spark Capital Growth and other notable investors such as Jeff Bezos. As the company provides loans for outstanding invoices, it positioned itself uniquely by lending to small businesses that cater to other companies. The market is therefore, large, less innovative and ripe for a service like Fundbox.
It's perhaps not surprising that venture capitalists are hungry for a piece of the market, which caters to companies that are too new or too risky to interest banks and traditional lenders. Fundbox claims to be doubling revenue growth each quarter, with a model that founder Eyal Shinar fittingly likens to Amazon, at least within its sector. "Bezos' overall thesis when it comes to Amazon was [to] try to build a common sense solution that leveraged new technology," he tells Inc. "That's not too dissimilar to what we're doing today."