Prudential Financial and Radicle Impact Lead Series A Funding for LendStreet
Consumer Debt Restructuring Platform Closes $7 Million Equity Round; Raises $110 Million in Debt Financing to Support Growth and Mission to Improve US Consumers' Financial Health
OAKLAND, Calif., June 7, 2018-- LendStreet, Inc. (LendStreet), the leading online consumer debt restructuring and consolidation platform, announced that it has closed a $7 Million Series A equity round, led by Prudential Financial, Inc. (Prudential) and Radicle Impact (Radicle). The company has also raised $110 million in debt financing from Prudential and Community Investment Management (CIM).
Prudential and Radicle join LendStreet's existing investors Accion, the Center for Financial Services Innovation (CFSI), Serious Change, Crunchfund, Kapor Capital, and Cross Culture Ventures in participating in the round.
LendStreet restructures debt for consumers in financial distress. The company provides technology- based solutions and resources that reduce consumer debt, increase credit scores, and improve savings. Since its inception, LendStreet has helped customers successfully reduce their debt by nearly 40 percent and improve their credit score by an average of 100 points.
"Lower and middle-income Americans are struggling and relying on high interest credit cards for their day-to-day survival. These investments will enable us to scale our platform and reach more consumers who are struggling with too much debt," said Jerry Nemorin, Founder and CEO, LendStreet. "Prudential, CIM, Radicle Impact, and our other investors share our vision of finally giving mainstream Americans access to an equitable and transparent alternative for their mounting credit card debt."
Like LendStreet, Prudential is committed to improving the overall financial health of individuals, particularly those that are underserved by traditional financial tools, and works to bring financial security within reach of all Americans. Through investments of both capital and talent, Prudential has supported LendStreet's goal of providing more responsible products, offering financial literacy tools and incenting positive behavioral changes since 2017.
"Many Americans are living paycheck to paycheck and don't have the adequate resources to withstand a financial shock," said Miljana Vujosevic, Vice President of Impact Investments. "Too many consumers have no choice but to turn to products that don't offer a viable, comprehensive, trustworthy solution. Our investment in LendStreet is another example of Prudential's long-term commitment to solving societal problems and developing solutions that improve the financial health of our communities."
With this Series A Round, LendStreet welcomed two seasoned veterans to the LendStreet board. Miljana brings a decade of experience supporting economic opportunity for individuals and communities. Catha Groot, Principal at Radicle brings more than 10 years of investment experience and Radicle's mission to build a fair and transparent financial services system. They join existing board members R. Jerry Nemorin, Michael Snyder, and KG Charles-Harris.
"The LendStreet platform provides a solutions-based user experience for consumers under financial stress," said Tom Coombs, Co-Founder and Vice President of Product Development at LendStreet. "Understanding your options to pay down debt and rebuild your credit is not easy. LendStreet is giving overbanked consumers a more manageable, transparent and sustained path to restructuring debt and improving their financial health."
LendStreet, based in Oakland, California, was launched in 2013 to help financially distressed consumers improve their financial health. LendStreet works with other financial organizations to negotiate discounts with creditors on behalf of individuals in financial distress. Their debts are restructured as a loan with much lower, fixed and affordable payments that enable consumers to rebuild their credit and improve their financial lives. LendStreet is an active and prominent member of several community organizations that work to rebuild the financial wellness of consumers. http://www.lendstreet.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion in assets under management as of March 31, 2018, has operations in the United States, Asia, Europe, and Latin America. Prudential's diverse and talented employees are committed to helping families build and maintain their financial security through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. http://news.prudential.com.
About Radicle Impact Partners
Radicle Impact Partners is a mission-driven investment firm that invests in companies where financial success creates meaningful social and environmental value. Radicle Impact supports technology-enabled businesses that have the potential to transform three critical systems: energy, food and financial services. Founded in 2013, the firm is based in Oakland, CA. http://www.radicleimpact.com
About Community Investment Management
Community Investment Management (CIM) is an institutional impact investment manager that provides strategic debt funding to scale and demonstrate responsible innovation in lending in partnership with a select group of technology-driven lenders. CIM combines experience, leadership, and values to align the long-term interests of investors and the financial health of underserved borrowers.
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