Total amount raised
$13 Millions
Latest funding date
03/01/2023
Location
SoLo Funds has raised significant funding through multiple rounds, with notable investors such as Serena Ventures and Impact America Fund. The platform offers community-based financial services, including lending, borrowing, and banking solutions.
Keep reading to explore the intricacies of SoLo Funds' fundraising journey and the investors backing this innovative platform.
What Is SoLo Funds?
SoLo Funds, founded in April 2018, operates in the financial services sector, specifically focusing on FinTech, impact investing, and lending. The company is headquartered in Los Angeles, California, and has a diverse founding team consisting of Jarrel Carter, Rodney Williams, Taylor Bruno, and Travis Holoway.
With an employee count ranging from 51 to 100, SoLo Funds has grown to become the largest community finance platform in the United States. The platform enables members to support each other financially through various services, including lending, borrowing, and banking solutions.
How Much Funding Has SoLo Funds Raised?
- Pre-Seed Round
- Amount Raised: $120K
- Date: July 2018
- Lead Investors: Techstars
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the platform and develop the initial product offering.
- Seed Round
- Amount Raised: $1.6M
- Date: October 2019
- Lead Investors: Richelieu Dennis
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and scale the platform's user base.
- Convertible Note
- Amount Raised: $1.2M
- Date: May 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure additional capital for operational expenses and growth.
- Convertible Note
- Amount Raised: Not publicly disclosed
- Date: August 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and product development.
- Series A
- Amount Raised: $100K
- Date: January 2021
- Lead Investors: gener8tor
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance platform features and improve user experience.
- Series A
- Amount Raised: $10M
- Date: February 2021
- Lead Investors: ACME Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the business in the U.S. and offer an alternative to predatory payday lenders.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: March 2023
- Lead Investors: Serena Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale the platform and enhance financial services offered.
Total Amount Raised: $13.02M
Current Valuation: Not publicly disclosed
Key Investors
- Serena Ventures
- Details: Founded by tennis star Serena Williams, Serena Ventures focuses on early-stage companies. The firm aims to support diverse founders and innovative startups.
- Investment Focus Areas: Technology, consumer products, health and wellness.
- Notable Investments: Billie, MasterClass, The Wing.
- ACME Capital
- Details: ACME Capital is a venture capital firm that invests in early-stage technology companies. The firm is known for its strategic support and extensive network.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Robinhood, Bird, Hims & Hers.
- gener8tor
- Details: gener8tor is a startup accelerator that provides mentorship, funding, and resources to early-stage companies. The program has a strong track record of successful alumni.
- Investment Focus Areas: Early-stage startups across various industries.
- Notable Investments: SendGrid, DigitalOcean, Sphero.
- Richelieu Dennis
- Details: Richelieu Dennis is the founder of Sundial Brands and Essence Ventures. He is a prominent entrepreneur and investor focused on consumer brands and media companies.
- Investment Focus Areas: Consumer brands, media companies.
- Notable Investments: Sundial Brands (acquired by Unilever), Essence Communications.
- Techstars
- Details: Techstars is a global network that helps entrepreneurs succeed through accelerator programs and venture capital funding. The organization has a strong focus on mentorship and community.
- Investment Focus Areas: Early-stage startups across various industries.
- Notable Investments: SendGrid, DigitalOcean, Sphero.
What's Next for SoLo Funds?
SoLo Funds is poised to capitalize on the growing demand for alternatives to predatory payday lenders. With its community-based lending model, the company is expanding rapidly, particularly in states with high costs of living like Texas, Illinois, California, and New York. This expansion presents a significant opportunity for SoLo Funds to increase its user base and loan volumes, which are already growing at an impressive rate of 40% monthly.
Given its rapid growth and successful funding rounds, SoLo Funds is likely to attract more investment in the future. The company’s ability to maintain low default rates and offer innovative products like default insurance for lenders makes it an attractive option for investors. However, challenges such as regulatory compliance across different states and competition from established payday lenders and other fintech companies could pose hurdles as the platform scales.
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