P2Binvestor (P2Bi) recently announced that cofounder Bruce Morgan stepped down as CEO at the Denver-based financial technology company to take the position of executive vice chairman on its board. Cofounder and former President G. Krista Morgan was elected by the P2Bi Board of Directors to become the next CEO effective January 5, 2015. The father-daughter team cofounded P2Bi in 2012, developed a crowdfunding platform to deliver working capital to growing businesses, and started lending in early 2014.
Chairman of P2Bi, John Spiers announced,“The tremendous growth of P2Binvestor is in large part due to Morgan’s diligence in building a new and different company with a competitive product, a superior culture, and an inherent focus on customers. She is a natural entrepreneur and leader, and her innovative ideas, energy, commitment to transparency, and passion for helping small businesses grow are unparalleled.”
Morgan is a proven executive in alternative finance while also being one of the youngest women in a leadership position in the industry. She left an agency career in digital marketing in London to cofound P2Bi in Colorado in 2012. Since signing the company’s first client in May 2014, she has grown P2Bi’s commercial loan portfolio to $12.5 million, representing 30% month-over-month growth. P2Bi uses invoices to secure most credit lines and in just seven months’ time purchased more than $37 million in invoices.
Former CEO and now executive vice chairman of P2Bi, Bruce Morgan noted, “Over the past three years, Krista has demonstrated her leadership and strategic skills as she created a strong brand and broad market appeal for P2Bi. She created a modern crowdfunding approach to working-capital financing that appeals to a diverse generation of entrepreneurs who aren’t typical users of alternative finance.”
Morgan was a key driver in establishing P2Bi’s customer-friendly policies, such as eliminating monthly minimums, minimizing transaction costs for clients, and implementing daily clearing of client accounts to improve their cash flow. She also created a rate-guarantee policy that allows clients to cancel their contracts with P2Bi without penalty if they find less-expensive financing. Morgan felt policies like the rate guarantee would make it easier for P2Bi to build mutually beneficial alignment with its banking partners while meeting the needs of its fast-growing business clients.
Morgan stated, “We view it as a mark of success when our customers are offered a line of credit at a great rate with a bank. Our financing is designed to be a bridge that supports businesses through a high-growth phase on their way to being bankable. We pride ourselves in giving our clients as much capital as they need to grow at the most competitive rates with the best service. We want to be a great lending partner for as long as it makes sense.”
Under Morgan’s operational leadership, P2Bi transformed from a startup into a revenue-producing player in the alternative-lending and crowdfunding industries. With news of the recent Lending Club IPO, P2Bi is attracting more interest from businesses, investors, and others in the industry.
Morgan shared, “My goal as CEO is to put our customers—both businesses and investors—at the center of every decision we make and position P2Bi for long-term success. I want to make P2Bi a company that businesses think of first when they need a flexible, affordable source of working capital and one that accredited investors think of first when they want an alternative investment vehicle that offers fair returns and good liquidity. I’m honored to be leading an incredible team into the next phase of our company’s growth.”
As executive vice chairman, outgoing CEO Bruce Morgan will remain an active part of the management team and will be responsible for managing relationships with fund managers and leading the company’s credit underwriting function.