LendStreet, a leading online lender that helps customers rebuild their credit, announced that it has closed a $7 million Series A equity round led by Prudential Financial and Radicle Impact, a firm that invests in companies with the potential to transform their sectors.
LendStreet has also raised $110 million in debt financing from Prudential and Community Investment Management, an impact investment manager that provides debt funding to scale innovation in lending.
Jerry Nemorin, the founder and CEO of Oakland-based LendStreet, was born in Haiti. He worked for years on Wall Street, helping businesses do the same sort of debt restructuring his company now offers consumers, Black Enterprise reported.
Nemorin launched LendStreet in 2013, raising $3.2 million in seed funding from investors including Accion Venture Lab, Center for Financial Services Innovation, CrunchFund, Cross Culture Ventures, Kapor Capital, and Serious Change.
LendStreet restructures debt for consumers in financial distress. The company provides tech-based solutions and resources that reduce consumer debt, increase credit scores, and improve savings. Since its inception, LendStreet has helped customers reduce their debt by nearly 40 percent and improve their credit score by an average of 100 points, the company said in a June 7 press release.
“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,” Nemorin said. “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.”
“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, in a prepared statement. “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.”
We’re thrilled to close our equity funding round with @Prudential and Radicle Impact. We also announced $110m in debt financing. These investments will enable us to reach more of the 77 million consumers who are struggling with credit card debt. Details: https://t.co/AT0QnowAGM
— LendStreet (@LendStreet) June 7, 2018
Soon after graduating from the University of Virginia’s Darden School of Business in 2008, Nemorin was working on Wall Street, where he had a front-row seat to the country’s massive financial meltdown, UVA Today reported. Two years later, he saw the toll a 7.0-magnitude earthquake took on his native Haiti:
“Experiencing the aftermath of both events inspired him to help more people find a way toward recovery and self-reliance after a catastrophe. Nemorin realized that individuals needed a better, structured way to rebuild their lives. To provide that opportunity, he quit his job in the banking industry and (began) developing LendStreet.”
LendStreet works with other financial organizations to negotiate discounts with creditors on behalf of its customers in financial distress. Their debts are restructured as a loan with fixed payments that enable consumers to rebuild their credit.