Possible Finance is on a roll. The Seattle startup that provides small-dollar loans is rapidly growing its business and has more than 150,000 people on its waitlist.
Now the company is adding more fuel to the fire. It just raised a $10.5 million round led by Rebecca Lynn, co-founder of Canvas Ventures and an early investor in LendingClub, one of the most valuable fintech startups.
Possible Finance CEO Tony Huang told GeekWire that there was “significant investor interest” for this round. “We received multiple term sheets within the first few days of active fundraising,” he said.
Using the Possible Finance app, people can apply for loans of up to $500 without a credit check and receive funds the next day. Possible Finance links to a customer’s bank account and uses machine learning to analyze financial transaction data and make credit risk decisions rather than relying on FICO credit scores.
Borrowers have more time to pay back the money in installments and the repayments are reported to the credit agencies, helping people rebuild their credit. Traditional payday loans are structured differently, so those payments don’t count for credit scores, which can trap consumers in a costly cycle of borrowing.
Possible Finance has originated 50,000 loans to date, and 25,000 in the past two months alone. It is currently available in Washington, Texas, California, Ohio, Utah, Idaho, with plans for expansion into new states.
“Possible Finance is doing what I thought was impossible,” Lynn said in a statement. “They help people with a challenging credit history improve their financial outlook without being predatory.”
Added Huang: “She immediately believed in our approach and we feel really lucky to partner with Rebecca.”
Lynn is ranked among the top investors on the Midas List. Her fintech portfolio includes LendingClub, which went public in 2014, as well as Check, Roofstock, and FutureAdvisor, which was acquired in 2015. She was a longtime employee at NextCard, an online credit card company that went public in 2000.
Existing investors Unlock Venture Partners, Columbia Pacific Advisors, Union Bay Partners, and Tom Williams also participated in the latest round. Total funding is $13.5 million in equity financing. Possible Finance also recently inked a $30 million credit facility.
The company has 14 employees and expects to double headcount by the end of 2019.