PeerIQ, a financial information services company that connects peer-to-peer (“P2P”) lending to the capital markets by helping institutional investors analyze, access and manage risk, today announced that it raised $2.5 million in a seed-extension round.
Participants in the round include new investor and customer Victory Park Capital, as well as Fenway Summer Ventures and existing investors Uprising and former Morgan Stanley chairman and CEO John Mack. The financing follows the company’s April 2015 receipt of $6 million in seed funding from several prominent capital markets and technology investors.
PeerIQ will use the funds to accelerate its core growth initiatives: continuing new feature development for its risk analytics platform, growing its institutional investor client base, and hiring additional tech and client delivery talent.
“Over the past six months, we’ve delivered our first-generation platform and demonstrated the value of institutional grade market surveillance, scenario-testing, cashflow analytics, as well as portfolio management and reporting. This investment from a core customer is important validation of our product and will allow us to accelerate new feature development and client delivery. We are excited to partner with Victory Park Capital, as well as Fenway Summer Ventures and our existing investors.”
Philip Nanney, Vice President of Victory Park Capital, noted:
“Despite the rapid growth in both P2P loan origination and institutional participation in this market, there are few providers of advanced risk management and reporting solutions. As the market continues to grow and mature, we believe many asset managers will require tailored risk analytics in the P2P space, and we are excited to support PeerIQ in meeting this market demand.”
“As P2P lending continues to develop, market participants are looking to diversify their funding sources, from securitizations to credit facilities to closed-end funds. Advanced analytics and standards, which PeerIQ is bringing to market, are helping these new sources to scale effectively.”
Raj Date, Managing Director at Fenway Summer Ventures and formerly the first Deputy Director at the Consumer Financial Protection Bureau, added:
“PeerIQ’s suite of tools will drive better capital allocation and risk management in this new asset class, which is important to banks, regulators, and investors alike.”