Total amount raised
$257.7 Millions
Latest funding date
01/01/2021
Location
Fundation has successfully raised capital through multiple funding rounds, including a recent Debt Financing round that closed on January 1, 2021. The company has also achieved significant milestones, such as its acquisition by Linear and a merger with Camino Financial.
Fundation's innovative lending solutions, powered by artificial intelligence and machine learning, have enabled it to serve over 16,000 businesses across the United States. Keep reading to explore the intricacies of Fundation's fundraising journey and the investors backing this dynamic platform.
What Is Fundation?
Fundation, founded on November 21, 2011, is based in Reston, Virginia. The company was established by Doug Gordon and Sam Graziano. Fundation employs between 51-100 people.
Fundation provides digital financing solutions to small and medium-sized businesses (SMBs). The company leverages advanced technology and analytics to offer tailored financial services, including working capital loans and embedded lending solutions.
Fundation's mission is to empower regional and super-regional banks, commercial finance brokers, and large-scale loan marketplaces. By combining AI/ML with a human-centered approach, Fundation aims to create a responsible lending experience for its clients.
How Much Funding Has Fundation Raised?
- Debt Financing
- Amount Raised: $2.7M
- Date: March 28, 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support initial growth and development of Fundation's lending platform.
- Private Equity Round
- Amount Raised: Not publicly disclosed
- Date: November 29, 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and enhance technological capabilities.
- Debt Financing
- Amount Raised: $100M
- Date: August 23, 2016
- Lead Investors: Goldman Sachs
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To increase lending capacity and support small business loans.
- Debt Financing
- Amount Raised: $35M
- Date: March 1, 2017
- Lead Investors: MidCap Financial
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further enhance lending capabilities and expand market reach.
- Debt Financing
- Amount Raised: $120M
- Date: May 17, 2018
- Lead Investors: SunTrust Bank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance capacity to extend credit to small businesses across the U.S.
- Debt Financing
- Amount Raised: Not publicly disclosed
- Date: January 1, 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and strategic growth initiatives.
Total Amount Raised: $257.7M
Current Valuation: Not publicly disclosed
Key Investors
- Goldman Sachs
- Details: Goldman Sachs is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base.
- Investment Focus Areas: Investment banking, asset management, securities.
- Notable Investments: Uber, Spotify, WeWork.
- MidCap Financial
- Details: MidCap Financial is a middle-market-focused, specialty finance firm that provides debt solutions. It offers a range of financial products to middle-market companies.
- Investment Focus Areas: Debt solutions, middle-market companies, healthcare.
- Notable Investments: Not publicly disclosed.
- SunTrust Bank
- Details: SunTrust Bank is a large bank holding company that provides a wide range of financial services. It is known for its retail and commercial banking services.
- Investment Focus Areas: Retail banking, commercial banking, wealth management.
- Notable Investments: Not publicly disclosed.
- Garrison Investment Group
- Details: Garrison Investment Group is an alternative investment and asset management firm. It focuses on providing capital solutions to middle-market companies.
- Investment Focus Areas: Private equity, real estate, credit.
- Notable Investments: Not publicly disclosed.
- American Express Ventures
- Details: American Express Ventures is the venture capital arm of American Express. It invests in innovative startups that align with American Express's strategic priorities.
- Investment Focus Areas: Fintech, commerce, B2B services.
- Notable Investments: Stripe, Plaid, Bill.com.
What's Next for Fundation?
Fundation's future looks promising with the recent $120 million asset-backed credit facility from SunTrust Bank. This significant funding, along with existing partnerships with major financial institutions like Regions Bank and Citizens Bank, positions Fundation to expand its lending capacity to small businesses across the U.S. The digital lending industry is growing, and Fundation's strategic alliances provide a robust platform for continued growth.
While the company is well-positioned for future fundraising opportunities, challenges such as managing credit risk and maintaining strong partnerships could arise. However, with its solid foundation and strategic vision, Fundation is poised to navigate these challenges and continue its upward trajectory in the fintech space.
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