Total amount raised
$138.2 Millions
Latest funding date
4/1/2019
Location
Upstart has successfully raised significant funding through multiple rounds, attracting a diverse group of investors. The platform leverages artificial intelligence to offer a range of loan products, including personal loans, car loan refinancing, and home equity lines of credit.
Continue reading to delve into the details of Upstart's funding journey and discover the key investors supporting this innovative lending platform.
What Is Upstart?
Founded in 2012, Upstart is a leading AI lending marketplace based in San Mateo, California. The company partners with banks and credit unions to expand access to affordable credit.
Upstart leverages artificial intelligence and machine learning to offer a variety of loan products, including personal loans, car loan refinancing, and home equity lines of credit. The platform aims to automate the borrowing process and provide more accurate pricing for credit.
The company was founded by Andy Palmer, Anna M. Counselman, Dave Girouard, and Paul Gu. As of now, Upstart employs between 1001 and 5000 people.
How Much Funding Has Upstart Raised?
- Seed Round
- Amount Raised: $1.8M
- Date: August 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial AI lending platform and attract early adopters.
- Series A
- Amount Raised: $5.9M
- Date: April 2013
- Lead Investors: First Round Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and expand the team.
- Series B
- Amount Raised: $18.9M
- Date: October 2014
- Lead Investors: Khosla Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance AI capabilities and increase market penetration.
- Series C
- Amount Raised: $35M
- Date: July 2015
- Lead Investors: Third Point Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product offerings and enter new markets.
- Series D
- Amount Raised: $32.5M
- Date: March 2017
- Lead Investors: Rakuten
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop AI technology and form strategic partnerships.
- Series D
- Amount Raised: $50M
- Date: April 2019
- Lead Investors: Progressive
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the AI platform to other types of credit.
- Post-IPO Debt
- Amount Raised: $375M
- Date: September 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and growth initiatives.
- Post-IPO Debt
- Amount Raised: $425M
- Date: November 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further strengthen the company's financial position.
Upstart has raised a total of $944.1M. The current valuation is Not publicly disclosed.
Key Investors
- First Round Capital
- Details: First Round Capital is a venture capital firm that specializes in providing seed-stage funding to technology companies. Founded in 2004, it has a strong track record of supporting early-stage startups.
- Investment Focus Areas: Technology, consumer internet, enterprise software.
- Notable Investments: Uber, Square, Warby Parker.
- Khosla Ventures
- Details: Khosla Ventures is a venture capital firm founded by Vinod Khosla, co-founder of Sun Microsystems. The firm focuses on impactful technology investments.
- Investment Focus Areas: Technology, healthcare, clean energy.
- Notable Investments: DoorDash, Impossible Foods, Square.
- Third Point Ventures
- Details: Third Point Ventures is the venture capital arm of Third Point LLC, a New York-based hedge fund founded by Daniel S. Loeb. The firm invests in technology and healthcare sectors.
- Investment Focus Areas: Technology, healthcare, fintech.
- Notable Investments: SentinelOne, Upstart, Zymergen.
- Rakuten
- Details: Rakuten is a Japanese e-commerce and online retailing company founded by Hiroshi Mikitani. It operates globally and has a diverse portfolio of investments.
- Investment Focus Areas: E-commerce, fintech, digital content.
- Notable Investments: Lyft, Pinterest, Rakuten Viber.
- Progressive
- Details: Progressive is a major American insurance company known for its innovative approach to auto insurance. It was founded in 1937 and is headquartered in Mayfield Village, Ohio.
- Investment Focus Areas: Insurance, financial services, technology.
- Notable Investments: Not publicly disclosed.
What's Next for Upstart?
Upstart's future looks promising as it aims to expand its AI platform to cover more types of credit. With partnerships through the "Powered by Upstart" program and inclusion in Progressive's Advantage Products, the company is well-positioned to tap into a broader market. The significant market presence, evidenced by originating over $3.3 billion in loans, underscores the vast opportunities ahead.
Future fundraising seems likely, given the successful $50 million equity funding round and strategic partnerships. These funds will support technological advancements and market expansion. However, Upstart may face challenges such as competition from other AI-driven lending platforms and regulatory hurdles related to AI and lending practices.
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