Lendio
{{short description|United States small business loan company (e. 2011)}}
{{Infobox company
| name = Lendio
| logo = File:Lendio logo on-white (2).jpg
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| industry = Small business loans
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| predecessor = FundingUniverse
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| founded = 2011
| founder = Brock Blake, CEO{{cite news |newspaper=The New York Times |url=https://www.nytimes.com/2020/04/02/business/stocks-today-coronavirus.html |title=Small-Business Relief Effort 'a Mess' |date=April 2, 2020}}
Trent Miskin, CGO
Brett Child, EVP Sales
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| key_people = Chad Iverson, COO
Ben Davis, Chief Revenue Officer
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| website = {{URL|http://www.lendio.com}}
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Utah-based Lendio{{cite news |newspaper=The New York Times |url=https://www.nytimes.com/2011/10/27/business/smallbusiness/when-should-a-small-business-hire-a-chief-financial-officer.html |title=When Should a Small Business Hire a Finance Chief? |author=Darren Dahl |date=October 26, 2011}} (formerly Funding Universe), founded in 2011 by Brock Blake and Trent Miskin, is a free online loan marketplace in the U.S. targeting small business owners.
History
Lendio's predecessor, Funding Universe ({{visible anchor|FundingUniverse}}){{anchor|Fundinguniverse}}
{{cite magazine |magazine=Forbes |url=https://www.forbes.com/sites/helencoster/2011/02/25/funding-universe-lendio |title=Funding Universe Matches Entrepreneurs With Loans. Is The Advice Worth The Price? |author=Helen Coster |date=February 25, 2011}}{{cite news |newspaper=Wall Street Journal (wsj.com) |url=https://www.wsj.com/articles/SB119972623737172427 |title=Web Sites Help Bring Together Entrepreneurs and Investors |quote=$375,000 in angel investor backing .. through FundingUniverse |author=Daniel Hausmann |date=January 10, 2008}} was a pay-to-pitch{{cite news |newspaper=Wall Street Journal|url=https://www.wsj.com/articles/SB10001424052748704853404575322901884224746|quote=While a few companies succeed in securing a check, most go home empty-handed. |title=Free Pitches? Entrepreneurs and Big Investors Push Back Against Pay to Pitch |author=Ty McMahan |date=August 16, 2010}} on Inc.'s list of 'the fastest-growing privately held companies.' They stopped charging "amid the criticism."{{cite news |newspaper=Wall Street Journal (wsj.com) |title=Services Let Start-Ups Pitch to Angels, for Free |url=https://www.wsj.com/articles/SB10001424052748704198004575310561617944540 |quote=amid the criticism. ... FundingUniverse LLC stopped charging |date=June 17, 2010}}
The name FundingUniverse was an outgrowth of the FundingUtah that Blake and Miskin began in 2006.{{cite web |url=https://finance.yahoo.com/news/lendio-ceo-started-billion-dollar-110043650.html |title=This Lendio CEO Started a Billion-Dollar Business That Helps Other Entrepreneurs Get Their Start |author=Gabrielle Olya |date=May 17, 2019}}
Founded in 2006 as FundingUtah, it became FundingUniverse and, by 2011, Lendio.{{cite web |website=TechCrunch |url=https://techcrunch.com/2011/06/02/lendio-scores-2-million-more-to-assist-business-owners-in-securing-loans |title=Lendio Scores $2 Million More To Assist Business Owners In Securing Loans |date=June 2, 2011}} CEO Blake{{cite news |newspaper=The New York Times |url=https://www.nytimes.com/2020/03/23/business/coronavirus-small-business-loans.html |title=Small Businesses Seek a Crisis Lifeline Beyond Loans |date=March 23, 2020}} has served in that role to each.
Founded in 2011, Lendio facilitated its first loan in Q4 2013. In 2014, it coordinated $12.4 million in funding to more than 400 small business owners. By 2015, the company had expanded to $128 million in financing.{{cite press release|url=https://www.prweb.com/releases/lendio_momentum_soars_in_2015_with_record_revenue_and_customer_growth/prweb13231323.htm|website=PRWeb|title=Lendio Momentum Soars in 2015 with Record Revenue and Customer Growth|access-date=2018-11-02}}
In October 2016, Lendio raised $20 million{{cite web|author=Pymnts |url=https://www.pymnts.com/news/investment-tracker/2016/lendios-latest-round-led-by-comcast/ |title=Lendio's Latest Round Led By Comcast |publisher=PYMNTS.com |date=2016-10-26 |access-date=2019-03-27}} in funding from Comcast Ventures and Stereo Capital with participation from existing investors Napier Park, Blumberg Capital, Tribeca Venture Partners, and North Hill Ventures. By 2016, it had delivered over $250 million in total funding{{cite press release|url=https://www.prweb.com/releases/lendio_tops_250_million_in_funding_to_10_000_plus_small_businesses/prweb13596385.htm|website=PRWeb|title=Lendio Tops $250 Million in Funding to 10,000-plus Small Businesses|access-date=2018-11-02}} to more than 10,000 small businesses.
The Lendio Franchising program was launched in early 2017.{{cite web|url=https://www.crowdfundinsider.com/2017/03/96823-lendio-unveils-new-marketplace-lending-franchise-program/|title=Lendio Unveils New Marketplace Lending Franchise Program|date=1 March 2017|website=Crowdfund Insider}} As of 2018, it had facilitated $430 million to over 7,000 small businesses in the U.S.{{cite web|url=https://smallbiztrends.com/2018/10/lendio-franchise.html|title=Lendio Offers Franchise Opportunities to Serve the Small Business Financing Market|first=Rob|last=Starr|date=6 October 2018|publisher=}}
In Q2 2018, Lendio reported{{cite web|url=https://markets.businessinsider.com/news/stocks/lendio-reports-q2-results-90-year-over-year-revenue-growth-1027393627|title=Lendio Reports Q2 Results: 90% Year-Over-Year Revenue Growth - Markets Insider|first=finanzen net|last=GmbH|website=markets.businessinsider.com}} 90% year-over-year revenue growth. In October 2018, Lendio announced it had serviced $1B of total loans to over 51,000 small businesses across the country, providing $3.8B in economic output.
In Q1 2020, Lendio announced it had secured $55M in a Series E Funding Round.{{Cite press release|url=https://www.lendio.com/press-releases/lendio-series-e-funding/|title = Lendio Closes $55M Series e Funding Round Led by Mercato Partners|date = 27 February 2020}} In the first month of the Paycheck Protection Program during the COVID-19 pandemic, Lendio onboarded hundreds of lenders to help facilitate what would eventually amount to $8 billion in loan approvals for over 100,000 businesses.{{Cite press release|url=https://www.lendio.com/blog/small-business-insights/lenders-work-together-ppp/|title=Lendio's Network of Lenders Secure PPP Loan Approvals|date=19 August 2020}}
Lending platform
Lendio's platform reviews metrics including the business's financial projections, use of funds, industry, and monthly revenue to find loans option for borrowers. The platform uses a series of questions to predict which loan type will most likely match a business owner's qualifications. Each borrower is also assigned a funding manager to answer questions through the entire process. Lendio's online application process takes an average of 15 minutes to complete, compared to an average of 25 hours filling out traditional lending applications.{{cite web|url=http://www.hbs.edu/faculty/Publication%20Files/17-042_30393d52-3c61-41cb-a78a-ebbe3e040e55.pdf|author1=Karen Gordon Mills|author2=Brayden McCarthy|publisher=Harvard Business School|date=2016-11-29|title=The State of Small Business Lending: Innovation and Technology and the Implications for Regulation|access-date=2018-11-02}}
Small business owners are offered financing options including credit cards, lines of credit, short-term specialty loans and long-term traditional loans.