Lending & Debt Dominates PE Investment In Crowdfunding Space

Alex Feldman at Crowdsunite took to Crunchbase to seek out venture capitalists and angel investors that had invested in crowdfunding companies. The main takeaway: P2P lending and debt-based crowdfunding plays have been dominant in terms of garnering investment from private equity firms, venture capitalists and angel investors.

He compiled statistics from 45 crowdfunding-related companies, representing $866 million in investments. Of that $866 million, almost 80% of it was invested in platforms focusing on lending and debt.

CrowdfundingInvested

Feldman also provided the following chart showing venture capitalists, angels and accelerators and the companies they have funded. All of the following players hold a stake in at least three crowdfunding-related companies…

InvestorTypeBusinesses
Google VenturesVCLendUp, AngelList, CircleUp, OnDeck, Upstart, Rally
SV AngelVCRally, CrowdTilt, FundersClub, Kabbage, Naition Builder, Patreon
First Round CapitalVCOn Deck Capital, GiveForward, Upstart, Funders Club
Union Square VenturesVCKickStarter, CircleUp, Lending Club, Funding Circle
Accel PartnersVCLenddo, Funding Circle, Prosper
KPCBVCLendUp, AngelList, Upstart, Lending Club
Andreessen HorowitzVCLendUp, Nation Builder, Funders Club, CrowdTIlt
Omidyar NetworkVCLenddo, Nation Builder, Change.org, Prosper
QED InvestorsVCProsper, LendUp, SoMoLend, AvantCredit
Y CombinatorAcceleratorFundersClub, CrowdTilt, WeFunder, Watsi
Khosla VenturesVCIndiegogo, OnDeck, Upstart
Draper Fisher JurvetsonVCProsper, AngelList, FundersClub
Thomvest VenturesVCLendUp, Kabbage, LendingClub
CrunchFundVCAngelList, Crowdtilt, upstart
Alexis OhanianAngelLendUp, CrowdTilt, Patreon
Garry TanAngelLendUp, CrowdTilt, Patreon
Naval RavikantAngelRally, CrowdTilt, GiveForward

Lending Club recently announced that they are on pace for $2 billion in loan originations in 2013. In short, P2P lending is extremely disruptive and growing quickly. Lending-based crowdfunding deals also have a more tangible exit than equity-based crowdfunding deals as of now, which may serve to attract a lion’s share of investors early on. This will be a trend to keep an eye on into 2014.

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