u.s. online, non-bank finance landscape

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U.S. ONLINE, NON-BANK FINANCE LANDSCAPE Curated through May 2016

Milken Institute Center for Financial Markets

@MI_CFM 2

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JACKSON MUELLER is the deputy director of the FinTech program at the Milken Institute’s Center for Financial Markets. His focus is on capital formation policy and financial markets education initiatives. He is the author of FinTech in Focus, and the curator of this landscape.

[email protected] @Jackson_Mueller

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Table of Contents I.  Where They’re Located (Slide 8) II.  Consumer Finance (9-49)

a.  Marketplace Platforms: Retail Investor Focus (10-12): Lending Club, Prosper b.  Marketplace Platforms: Accredited and/or Institutional Investors (solely) (13-19): CircleBack

Lending, Pave, Payoff, Peerform, RocketLoans, Upstart c.  Balance Sheet Platforms (20-26): Argon Credit, Ascend Consumer Finance, Best Egg

(Marlette Funding), Borro, Insikt, SoFi d.  Hybrid Platforms: Marketplace and Balance Sheet (27-29): Avant, CommonBond e.  A Marketplace for Consumer Finance (30-32): Credible, DriverUp f.  Income Smoothing (33-34): Even g.  Personal Credit with a Social Boost (35-38): Elevate, LendUp, Oportun h.  Purchase Financing (39-42): Affirm, Loan Hero, PayPal Credit i.  Lending via Your Social Network (43-44): Puddle j.  Education Financing (45-49): Climb, CommonBond, Earnest, SoFi

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Table of Contents III. S Small Business Finance (slides 50-101)

a.  Marketplace Platforms: Retail Investor Focus (51-52): StreetShares b.  Marketplace Platforms: Accredited and/or institutional investors (solely) (53-58): ApplePie

Capital, Bond Street, Credibility Capital, Funding Circle, Lending Club c.  Balance Sheet Platforms (59-70): CAN Capital, Credibly, The Credit Junction, Fundation,

Kabbage, Lighter Capital, Mainspring Funding, OnDeck, RapidAdvance, SnapCap, Smartbiz (Better Finance)

d.  A Marketplace For Small Business Finance (71-76): Biz2Credit, Bizfi, Fundera, Intuit Quickbooks Financing, Lendio

e.  Purchase Financing (77-78): LiftForward f.  E-commerce Credit (79-81): Amazon Lending, PayPal Working Capital, Square g.  Lending via Your Social Network, the Crowd (83-87): Able, Dealstruck, KickFurther,

P2BInvestor h.  Invoice Financing (88-94): BlueVine, C2FO, CreditSuppliers, FastPay, FundBox, Taulia i.  Merchant Cash Advance (95-99): Behalf, CAN Capital, Capify, Strategic Funding

IV. S Nonprofit Micro- and Small Business Finance (100-102): Accion, Kiva 6

Table of Contents V. S Federal Initiatives (103-104): U.S. Small Business Administration VI. S Enter: Incumbent Banks (105-107): Goldman Sachs, Wells Fargo VII. S Common Originating Banks (108) VIII.S Infrastructure Providers / Peer-to-Peer Investment Tools (109) IX. S Credit Scoring: The Players (110) X. S Trade Associations / Advocacy Groups Involved (111) XI. S Regulatory Outlook 2016 and Beyond: Online, Non-Bank Financing Issues Likely to

Emerge (112-116)

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I. Where They’re Located

72 PLATFORMS* profiled in this deck

51 / 72 profiled are based in CA or NY

*Lending Club and PayPal counted twice as they operate in both small business and consumer finance. Incumbent firms Goldman Sachs and Wells Fargo also profiled due to their online finance ambitions, along with the U.S. Small Business Administration.

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II. Consumer Finance

Marketplace Platforms: Retail Investor Focus

HEADQUARTERS: San Francisco, CA FOUNDER: Renaud Laplanche. CURRENT ACTING CEO: Scott Sanborn (also President), Executive Chairman: Hans Morris. LOAN ORIGINATION: WebBank LOANS: Personal loans up to $40,000. Interest rates from 5.99% - 35.89% for 24, 36, 60 month terms. Origination fee between 1-6% depending on loan grade (average fee: 5.28% as of Q1 2016). Unsuccessful payment fee of $15, late payment fee 5% of unpaid installment amount, or $15 (whichever is greater), assessed after 15 day grace period. Check processing fee of $7 per payment. Average interest rate on loans issued through the platform (Feb. 2016): 12.60%, compared with a national average of over 17% for credit cards. NOTABLE BOARD MEMBERS: John Mack, the former Morgan Stanley chief executive, and Lawrence Summers, the former US Treasury secretary, Mary Meeker of Kleiner Perkins Caufield & Byers, and others.

TIMELINE 2006

§  Founded 2007

§  Launched on Facebook Platform back when Facebook had 24 million users §  Around the time of its Series A, the Lending Club community totaled 13,000

Facebook users, with $750,000 in loans transacted among those users §  Expands nationwide across the 50 states

2008 §  Scrutinized by the SEC. Quiet period: April 7, 2008 - October 14, 2008 §  Lending Club required to register loans originated on its website as securities with

the SEC 2010

§  Lending Club turns 3, captures 80% of the US peer-to-peer marketplace 2012

§  Facilitated more than $1 billion in personal loans since inception 2014

§  Emergence into small business lending §  Acquisition of Springstone Financial leading to financing for elective medical

procedures and private education §  Initial Public Offering. Raised roughly $1 billion, valuing the company at $8.5 billion.

Fourth largest consumer internet IPO in U.S. history after Google, Facebook, and Twitter

2015 §  Partnerships including with Google, Alibaba, BancAlliance, HomeAdvisor, Citigroup,

Sam’s Club, Opportunity Fund… etc. §  Interest rates on its platform increase .25% in line with Fed rate hike §  New credit product for SMEs unveiled providing “convenient, flexible and affordable

credit” 2016

§  Announces enhanced program structure with WebBank, where the issuing bank will keep an “on-going economic interest in all loans made after they are sold”

§  Announces $150 million share buyback, saving borrowers an estimated $1.6 billion §  Launches Marketplace Lending Association with Funding Circle and Prosper

FundingRound Announced Amount/Involvement

SeriesA August2007 $10.26M/CanaanPartners,NorwestVenturePartners

SeriesB March2009 $12M/MorgenthalerVentures,CanaanPartners,NorwestVenturePartners

SeriesC April2010 $24.5M/Founda?onCapital,MorgenthalerVentures,CanaanPartners,NorwestVenturePartners

SeriesD August2011 $25M/UnionSquareVentures,MorgenthalerVentures,CanaanPartners,NorwestVenturePartners

SeriesE June2012 $17.5M/KleinerPerkinsCaufield&Byers;JohnMack

SeriesF April2014 $65M/T.RowePriceAssociates,Inc.,WellingtonManagementCompany,BlackRockandSandsCapital 11

HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Chris Larsen, John Witchel CURRENT CEO: Aaron Vermut LOAN ORIGINATION: WebBank LOANS: $2,000 - $35,000. Fixed rates from 5.99% to 36% APR for first time borrowers. Terms: 3-5 years. Origination fee: 0.50% - 4.95%. $15 fee if failed automatic withdrawal, return check, brank draft if payment is more than 15 days late. Single monthly payment. First US peer-to-peer lending marketplace in the US. More than 2 million members and $6 billion in funded loans.

TIMELINE 2006

§  Launched 2008

§  Scrutinized by the SEC. Quiet period: October 15, 2008 - July 13, 2009. Prosper required to register loans originated on its website as securities with the SEC

2009 §  Relaunched site after SEC review §  One of the companies behind the Coalition for New Credit Models. Coalition

members: Credit Karma, Loanio, ProFounder, Progreso Financiero, Prosper, the Receivables Exchange, SecondMarket

2012 §  Chris Larsen moves from CEO and Chairman to exclusively Chairman. Stephan

Vermut named as CEO and member of the board of directors. Ron Suber takes over as Head of Global Institutional Sales, and Aaron Vermut joins as President

2013 §  Names Raj Date, Managing Partner at Fenway Summer, to Board of Directors. Date

previously worked for CFPB 2014

§  Surpassed $1 billion in personal loans since inception §  Has 35% share of the online consumer peer-to-peer lending marketplace §  Names Aaron Vermut CEO; Ron Suber Steps into Role as President; Stephan

Vermut Named Executive Chairman 2015

§  Surpassed $5 billion in loans originated through its platform since inception. §  Partnerships with Western Independent Bankers, OnDeck, Radius Bank, Spirit

Airlines §  Acquisition of American Healthcare Lending (medical loans); BillGuard (fraud

monitoring, financial management) §  Citigroup marketing $377 million in bond backed by Prosper loans. Moody’s

assigned a provisional grade of A3 to the highest-rated class of notes covering 54% of the loan pool

§  New API platform announced for investors 2016

§  Unveils Prosper Daily, its first mobile application (replaces finance app, BillGuard). §  AAdjusted its prices and loss rates due to increased forward interest rates and

widening spreads §  Released Prosper Marketplace Financial Wellness Study covering US personal

finance §  Partners with HomeAdvisor §  Moody’s may downgrade three bonds sold to Citigroup and backed by consumer

loans originated on the Prosper platform §  Prosper announces second rate hike of this year "in anticipation of action by the Fed

to raise rates next month, and the expectation of this action is already largely priced into forward curves and swaps.“ Weighted borrower rate now between 6.88% - 31.1% vs. 6.88% - 30.84% prior


SeriesA April2005 $7.5million/Accel,Benchmark

SeriesB February2006 $12.5million/Accel,OmidyarNetwork,Benchmark,FidelityVentures

SeriesC June2007 $20million/OmidyarNetwork,Benchmark,DAGVentures,FidelityVentures,MeritechCapitalPartners

SeriesD April2010 $14.7million/TomorrowVentures,LLC,CompuCreditHoldingsCorpora?on,AccelPartners;BenchmarkCapital;andothers.

SeriesE June2011 $17.2million/DraperFisherJurvetson,CrosslinkCapital,AccelPartners,CompuCredit,OmidyarNetwork,andothers.

Venture January2013 $20million/Sequoia,DraperFisherJurvetsonandCrosslinkCapital,AccelPartners,CompuCredit,OmidyarNetwork,andothers.

PrivateEquity September2013 $25million/Sequoia,BlackRock

PrivateEquity May2014 $70.1million/FranciscoPartners,aprivateequityfirmwithIns?tu?onalVenturePartners,PhenomenVenturespar?cipa?ng

Venture April2015 $165million/CreditSuisseNEXTInvestors,J.P.MorganAssetManagement,BBVAVentures,andothers

Marketplace Platforms: Accredited and/or Institutional Investors (solely)

HEADQUARTERS: Baco Raton, FL CO-FOUNDERS: Michael Solomon (CEO), Todd Walters (COO) LOAN ORIGINATION: County Bank of Rehoboth Beach, Delaware LOANS: $3,001 - $35,000. APR from 6.63% to 35.18%. $5 fee per payment if elect to make non-electronic transfers. Pay over 36, 60 months. Lowest APR for a loan term of 36 months: 6.63%. Lowest APR for a loan term of 60 months: 12.88%. CircleBack’s focus is exclusively on partnering with institutional investors to fund loans. Both co-founders previously founded Loanio.com back in 2008, but the recession and SEC regulations (S-1 registration) marked the internet platforms downfall.

TIMELINE 2013

§  Launched §  Opened in Georgia and New Mexico, with initial loans funded internally for the time

being 2014

§  Announce $1.9 million equity finance round with GETCO LLC founders Stephen Schuler and Dan Tierney. GETCO is part of Knight Capital Group

§  Entered agreement with Jefferies to facilitate the sale and securitization of up to $500 million aggregate principal amount of consumer loans

2015 §  First securitization of consumer loans completed: $106 million structured and sold by

Jefferies §  Along with Series A, also agreement with Pine River Capital Management for the

right to purchase as much as $500 million in aggregate principal amount of high-quality consumer loans originated by CircleBack

§  As of September 2015, facilitated the origination of over $200 million in loans to high-quality borrowers

2016 §  Originated over $400 million in loans §  Hired Scott Lascelles, former CMO of SpringLeaf, and John Donovan, former COO/

Board Member of Lending Club §  Third securitization in progress for the second quarter

FundingRound

Announced Amount/Involvement

SeriesA September2015 $17.4Million/PineRiverCapitalManagement,WicklowCapital

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HEADQUARTERS: New York, NY CO-FOUNDERS: Oren Bass (CEO), Sal Lahoud (Creative Director) LOAN ORIGINATION: Cross River Bank LOANS: $3,000 - $25,000 with interest rates between 5.99 – 22.42% and APRs from 6.97 – 27.1%. Terms: 2 to 3 years. Origination fee between 1-6%. Late fee (if 16 days past due): 5% of past due amount or $15, whichever is greater. Can elect to defer the first three payments if taking a loan for a course, but interest on the loan will continue to accrue. Targeted towards Thin Files with credit scores within the 680-750 range. When it started, intention was to create an “income share” model where borrowers would agree to sell investors a portion of their future earnings. However, due to legal, tax, regulatory certainty, Pave could not get the product off the ground. Focus shifted to providing traditional loans.

TIMELINE 2012

§  Founded. Pilot program in NY with $5 million in seed money. Funds 8 people originally

2013 §  Launches Ripple “Pay It Forward” allowing unaccredited backers to invest in

students. Returns will be pooled and reinvested in other prospects and projects, rather than go back to the unaccredited backer

§  As of November, Pave had 4,500 prospects and 1,700 backers. 60 people have been funded, with average investments of $2,000 per backer

2014 §  Partnership with General Assembly, RefactorU along with 40 other education

partners to help students raise funds for tuition §  Sen. Marco Rubio in an interview with CNBC, supports PAVE §  Announcement of Pave Loan à Switch in focus. No longer offering income sharing,

but fixed-rate loan products focused on Thin Files §  Launched Talent Fund, open ended fund for qualified investors to invest in Pave

loans 2015

§  Launched nationwide – major backers: RPM Ventures and Maxfield Capital §  Consortium of investors led by Seer Capital agrees to invest up to $300 million in

Pave loans and provide the company with additional equity capital 2016

§  Equity raises $8 million by Maxfield Capital

FundingRound


SeriesA April2016 $8million/MaxfieldCapital31YearsMedianAge

738AverageFICO

$82,000AverageIncome

35%ofBorrowerTakeaCourse

$14,100AverageLoanSize

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HEADQUARTERS: Costa Mesa, CA FOUNDER: Scott Saunders (CEO) LOAN ORIGINATION: First Electronic Bank LOANS: $5,000 - $35,000. Fixed APR: 8-22%. Terms: 24, 36, 48, 60 months. Origination fee: 2-5% (based on length of loan). $15 fee for failed payment transaction. First US peer-to-peer lending marketplace in the US. More than 2 million members and $6 billion in funded loans. Factors considered in application: credit score of 660+, debt-to-income ratio ≤ 50%. 3 years of good credit history. No current delinquencies and nothing greater than 90 days within last 12 months. No more than two open and satisfactory trades (opened and made payments on time), no more than one installment loan within past 12 months. Loans to consumers to repay outstanding credit card debt; potential offer of wealth management products in the long-term. Payoff’s loans can be used only to consolidate credit card debt. Notable board members (January 2015): Mohamed El-Erian (Former CEO, Pimco), Joe Saunders (Former CEO, Visa), Sean Park (Founder & Chairman, Anthemis Group), Jim Lane (Former Partner, Goldman Sachs), and Scott Saunders (Founder & CEO, Payoff). Galen Buckwalter, former eHarmony chief scientist, is now chief scientist at Payoff Product available in 30 states.

TIMELINE 2009

§  Founded 2011

§  Launch website with $3.5 million investment capital from FirstMark Capital; Betsy Bernard, the former President of AT&T; Kai Huang, founder of Guitar Hero; Jim Nordstrom, former president of Nordstrom; David Solomon, Global co-head of Investment Banking at Goldman Sachs, and others

2012 §  Secures $2 million equity financing from Anthemis Group, Firstmark Capital, Great

Oaks Venture Capital §  Partnership with Encore Capital Group to provide Payoff services to the more than

34 million 34 million distressed consumers Encore works with 2014

§  $12 million equity round led by Mohamed El-Erian 2015

§  Secured $250 million in debt financing from Eaglewood Capital Management §  Since inception, the company has raised more than $300 million in debt and equity

capital §  Announces that beginning in 2016, it will be the first marketplace lender to provide

monthly access to FICO Scores to its members for free 2016

§  Releases study which finds 1-in-4 Americans and 1-in-3 millennials suffer from PTSD-like symptoms related to financial stress

§  Releases a further study which explores how personality interacts with financial decision-making

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HEADQUARTERS: New York, NY FOUNDER: Mikael Rapaport (CEO) LOAN ORIGINATION: Cross River Bank LOANS: 3-year terms personal loans ranging from $1,000 to $25,000 to those with credit scores as low as 600. APR from 7.12% to 29.99%. Origination fee included in APR. Late fee of 5% of the payment in question or $15, whichever is greater. $15 fee for payment made by ACH transfer or check that is returned due to insufficient funds, etc. $15 check processing fee. Peerform was the first P2P lender to introduce tranches as a way to mitigate risk. Continue to post loan titles and loan descriptions in their data, unlike Prosper and Lending Club which did away with that. Prospective borrowers must have a minimum FICO score of 600, a debt-to-income ratio below 40% (as calculated by Peerform), a credit profile showing no delinquencies, bankruptcy, tax lien, etc. within the last 12 months. Minimum of one open bank account and a minimum of one revolving account ever opened (Magnify Money, June 2015).

TIMELINE 2011

§  Launched. Introduced its Loan Options program allowing borrowers to come up with set of options that combines different loan amounts, grades and interest rates for each loan

2014 §  Re-launched platform after closing $1 million seed round led by Corporest

Development, a European-based advisory and investment firm §  Launched Peerform Loan Analyzer as an alternative scoring methodology for

assessing the creditworthiness of a borrower §  Agreement with Looking Glass Investments to utilize the loan analyzer to fund whole

loans. LGI has also partnered with Lending Club, Prosper, and Funding Circle §  As of December: Peerform issued over 500 loans at a total loan volume of around $2

million 2015

§  Expected Series A funding round in Q1

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HEADQUARTERS: Detroit, MI CEO: Todd Lunsford LOAN ORIGINATION: Cross River Bank LOANS: $2,000 - $35,000. Terms: 36 or 60 months. APR between 5.983% to 28.99% nationally. Automatic withdrawal via ACH. Check processing fee: $5. Late payment fee: 5% of the past due amount or $15, whichever is greater. Origination fee: 1% - 6% of the loan amount, which is paid to Cross River Bank and deducted from the borrower's balance before money is distributed. ACH/Check return fee: $15.

TIMELINE 2015

§  Reported in the Wall Street Journal that Quicken executives were in discussions about offering other types of consumer loans, though any product would not arrive until 2016

§  First reported by the Detroit Free Press that RocketLoans Marketplace was incorporated in Michigan and other states, sharing the exact same address as Quicken Loans. As of November, website was under construction

2016 §  Quicken Loans launches personal lending arm, RocketLoans. “The first financial

service that is not a mortgage product that we have offered in 30 years of existence.“ – Todd Lunsford

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HEADQUARTERS: San Carlos, CA CO-FOUNDERS: Dave Girouard (CEO), Paul Gu (Product), Anna Counselman (Operations) LOAN ORIGINATION: Cross River Bank LOANS: $1,000 - $50,000. APR from 4.66% - 29.99%. Terms: 3 and 5 year terms. Average loan (3 year term) on Upstart: APR of 15%. Late payment fee: 5% of unpaid amount or $15, whichever is greater. Borrower requirements: Minimum FICO of 640, though the platform does accept those with insufficient credit history. No bankruptcies, public records on a borrower's credit report, and no accounts in collections or delinquent. Must have less than 6 inquiries on the credit report in the last 6 months, not including student loan, vehicle loan or mortgage inquiries, and other requirements. Originally a “kickstarter” for college graduates, with focus on prime borrowers (education analytics). Funding to graduates with the promise of a certain percentage of their future income paid back over a number of years. Mentoring also came with the funding. Effort to allow recent graduates ability to fulfill their startup dreams. In 2014, the firm shut down its income-sharing agreements to focus on its fixed-rate loan product. Upstart has originated $400 million in unsecured personal loans since inception.

TIMELINE 2012

§  Launched with $1.75 million backing from Google Ventures, Kleiner Perkins Caufield & Byers, NEA and Mark Cuban

2013 §  Raised $3.5 million from Google Ventures, Kleiner Perkins Caufield & Byers, NEA,

Mark Cuban, Salesforce CEO Marc Benioff, IronPort Systems cofounder Scott Banister

§  Announce five year agreement – for those looking for short-term investments (coding schools, supplies… etc.). This on top of the original ten year agreement

§  Turns 1: $1M in funding offers have been made to upstarts, 555 unique funding offers have been made to date

§  Announce partnerships with the following coding schools: General Assembly, Dev Bootcamp, Launch Academy, Starter School, Metis, Code Fellows, and Coder Camps

2014 §  Announces traditional fixed rate loans on the Upstart platform across all 50 states.

It’s a three-year loan between $5,000 - $25,000 with interest rates set between 6.5% and 20%

§  Ranger Capital Group, through its Ranger Specialty Income Fund, begins to invest in Upstart loans

§  Victory Park Capital agrees to invest $100 million in loans on Upstart over the next two years

§  Announced a series of changes: Investors will be refunded origination fees if loan defaults; dropped service fees for investors

§  As of April: Backers have made 2,224 offers totaling $3.5M to 320 upstarts, with 3,056 unique repayments to backers in 14 months without a single default

§  May: Upstart discontinues offering income share agreements, will remain focused on fixed-rate loan product. “From a regulatory perspective, the income share concept has been received warmly to date. And while many regulatory and policy efforts are underway to facilitate the development of the market, these efforts will likely take many years—a timeframe ill-suited for a startup like ours”

2015 §  Victory Park Capital ups its investment in Upstart loans to $500 million §  Offer ability to invest in Upstart loans through Upstart IRA

2016 §  According to a blog post from Upstart's CEO, more than 28,000 loans have been

originated on the platform, and "we want to assure you that we've seen no degradation in credit performance." In the two years since Upstart’s first loan, "the portfolio has experienced low loss rates relative to the average interest rate across every loan grade"

FundingRound


SeriesA April2013 $5.9million/KhoslaVentures,Founder’sFund,Collabora?veFund,GoogleChairmanEricSchmidt,Salesforce.comCEOMarcBenioffandserialentrepreneurScodBanister

SeriesB October2014 $10.5million/

SeriesC July2015 $35million/ThirdPointVentures,KhoslaVentures,FirstRoundCapital,Collabora?veFund,Google’sEricSchmidt,SalesforceCEOMarcBenioff. 19

Balance Sheet Platforms

HEADQUARTERS: Chicago, IL CO-FOUNDERS: Raviv Wolfe (CEO) and Gary Zumski (CRO) LOAN ORIGINATION: Balance sheet lender REQUIREMENTS FOR PERSONAL INSTALLMENT LOANS: $2,000 - $35,000. Credit score 560+. Minimum income of $2,000 per month. APR: 4.99% - 95%. Terms: 2-5 years. PERSONAL LOAN REQUIREMENTS: “You do not need to have excellent credit to qualify for a personal loan with Argon. However, we do require that customers demonstrate a pattern of financial responsibility.” Income source and valid checking account required, along with other requirements. CURRENTLY LICENSED IN 7 STATES: CA, UT, IL, MO, GA, AL, NM Member of Chicago’s 1871 incubator.

TIMELINE 2014

§  Launched §  Raised $5 million debt facility

2015 §  Raised $75 million debt facility from Princeton Alternative Funding

2016 §  Wolfe mentioned in an interview of some "exciting" announcements on the horizon

for the company and the products it offers, but declined to go into further detail

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HEADQUARTERS: Los Angeles, CA CO-FOUNDERS: Stewart Sui, Scott Crawford and Steven Carlson (CEO) LOAN ORIGINATION: Balance sheet lender LOANS: $2,000 - $15,000 (depending on the state). Terms up to 36 months. APR 27-36%. Requirements: Income over $35,000, 580+ FICO score, no more than 6 inquiries in last 12 months. No delinquencies in past 3 months. No bankruptcy in the last 12 months, other underwriting criteria. Available in the following states: AL, CA, GA, IL, OR, UT. Late fees/dishonored payment charges depend on the state. Continue to post loan titles and loan descriptions in their data, unlike Prosper and Lending Club which did away with that. Uses Adaptive Risk Pricing technology that automatically adjusts a loan as the borrower’s risk profile changes. Incorporates dynamic pricing into consumer loans versus focusing on past behavior. Rate Rewards product, if users agree, allows Ascend to monitor a borrower’s fiscal behavior. It can also reduce interest cost up to 50%. Steve Carlson is a member of the CFPB’s Consumer Advisory Board.

TIMELINE 2015

§  Launches with $1.5 million in seed funding from Mucker Capital, OCA Ventures, Birchmere Advisors and the venture arm of Securian Financial Group

§  Launches its first product, Rate Rewards, allowing users to reduce their monthly interest payments

§  Announced partnership with LendingTree, becoming part of its personal loan network to compete against other lenders

§  Announced as one of the winners of a $3 million prize from Financial Solutions Lab – a $30 million, five-year, initiative backed by JPMorgan Chase and the Center for Financial Services Innovation. Capital and technical assistance will be provided to the winners

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HEADQUARTERS: Wilmington, DE FOUNDER: Jeffrey Meiler (CEO and Founder of Marlette Funding, LLC) LOAN ORIGINATION: Cross River Bank partnership to deliver Best Egg product LOANS: $2,000 - $35,000 for terms of 3 years or five years. APR from 5.99% to 29.99%. 0.99% - 4.99% origination fee. Requirements to qualify for lowest rate: 700 FICO score, individual annual income of $100,000. “Your verifiable income must support your ability to repay your loan.” Personal loan product of Marlette Funding, LLC. Best Egg is Marlette Funding’s first product.

TIMELINE 2013

§  Founded 2014

§  Launched Best Egg (eligibility to apply by invitation only) §  $383 million in loans funded since launch

2015 §  Bestegg.com opened to general public to apply for personal loans §  Balance sheet lender as of 2Q 2015. Prior to that the company had eight end-buyers

from asset managers, family offices, and banks who purchased 100% of Marlette’s loans

§  Announced $100 million securitization with Cross River Bank. Different from other securitizations in that Cross River Bank and Marlette Funding will share a 12.5% equity tranche with Deutsche Bank acting as the lender. This is the first time a marketplace lender and an FDIC-insured bank have completed a joint transaction.

§  Raised $75 million in equity funding led by Invus Opportunities §  Announces $1 billion in Best Egg loans originated since inception – taking less than

15 months 2016 §  First securitization collateralized by unsecured consumer loans ($140.9 million

consumer loan ABS transaction) originated under the online marketplace lending platform operated by Marlette Funding under the Best Egg brand

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HEADQUARTERS: London, UK (U.S.-based operations: New York, NY) FOUNDER: Paul Aitken (CEO) FOCUS: Top 10% of population. Personal loans secured through a customer’s luxury assets. LOAN ORIGINATION: Balance sheet lender LOANS:

§  Sales advance loans – allowing customers to obtain 70% of the estimated price of their luxury asset before it sells. An initial advance, while Borro maximizes the sale of luxury assets for the customer. Fixed interest rate on funds advanced: 1-2%. Sales fee: 15-20% of asset's final sale price. Borrow up to $5 million per luxury asset. Maximum loan to value: 75% of the estimated market value of the asset and can be as low as 30%.

§  Bridge loans – luxury assets to secure short term financing. Vast majority of Borro’s business. Loans: Up to $5 million per luxury asset (max LTV is 75% of the estimate of the market value of the asset, can be as low as 30%). Fixed rate: 2.99% - 3.99% per month. In CA, 2.99% - 4.99% per month. Term: 6 months (can be renewed to 12 months).

§  Term loans – Loans: Start at $100,000 (up to $5 million per luxury asset). Max LTV is 75% of estimate on market value of the asset, but can be as low as 30%. Terms: 18-36 (18, 24, 36) months. Interest rates from 0.99%. Penalty assessed for early settlement.

First online pawnbroker (according to FT article in 2009) ASSETS ACCEPTED: Jewelry & Diamonds, Luxury Watches, Fine Art & Antiques, Luxury Cars, Gold & Precious Metals, Luxury Handbags, Fine Wine.

TIMELINE 2008

§  Founded, originally headquartered in London 2012

§  Launched in the U.S., headquarters in NYC 2013

§  Nigel Morris, co-founder of Capital One, named Chairman of the Board §  Announces partnership with Biz2Credit, adding Borro to the small business credit

platform’s menu of loan products §  Sale Advance program introduced §  Surpasses $50 million in lending by the end of the year.

2014 §  Reaches $100 million lent against luxury assets and rare collectibles §  Raised $112 million from Victory Park Capital §  Forms an office in Beverly Hills, CA

2015 §  Raised $19.5 million in funding, led by OurCrowd and Rocket Internet §  Launches its term loan product

2016 §  Funded transactions to date: ~$300 million

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HEADQUARTERS: San Francisco, CA FOUNDER: James Guiterrez (CEO) LOAN ORIGINATION: Balance sheet, also opeartes as lending-as-a-service for brands Former founder of Progreso Financiero in 2005 to provide affordable credit to the Hispanic community, in particular. Partners with major brands providing customers with loan products or purchase financing under own brand name. Allows accredited investors to “participate in bonds backed by distinct loan portfolios that Insikt credit scores and processes.” Skin-in-the-game – loans go on Insikt’s balance sheet for first few months funded by the credit facilities. Angel investors include: Phil Purcell (former CEO Morgan Stanley and co-founder Discover), Mark Troughton (former president Green Dot), Tom Villante (CEO of Yapstone), Pete Briger (co-chairman of Fortress Investment Group), Jason Fish (founder of Capital Source), Tim Dattels (managing partner TPG Asia), Dan Carroll (former TPG Capital partner), and Matt Coffin (founder of LowerMyBills).

TIMELINE 2009

§  Gutierrez, of Progreso Financiero, was one of the founding members of the Coalition for New Funding Models in Washington, D.C.

2012 §  Founded

2014 §  Launched loan origination platform, Lendify §  As of December, completed three securitizations with fourth on the way. Has also

raised over $100 million in capital 2015

§  Sponsor of CA bill SB 235, allowing more businesses and storefronts offer affordable alternatives to payday loans

FundingRound


SeriesA December2013 $7million/AcceleratorVentures,Con?nentalInvestors,DanCarroll,FirstMarkCapital,RickHeitzmann,JeremyPhilips,PhilipPurcell,RajivGhatalia,RickHeitzmann,Serenge?AssetManagement,TimDadels,TomVillante

SeriesB July2014 $16million/Revolu?onVentures,FirstmarkCapital,Serenge?AssetManagement,PetersonVentures,JefferiesandAtalayaCapitalManagement.

25

HEADQUARTERS: San Francisco, CA FOUNDER: Mike Cagney (CEO) LOAN ORIGINATION: SoFi Lending Copr. PERSONAL LOANS: $5,000-$100,000 (depending on the state). Fixed rates: 5.95% - 12.99% APR (with AutoPay). Variable: 4.74 – 11.34% APR (with AutoPay). Interest rates on SoFi variable rate personal loans are capped at 14.95%. Variable rates are not offered in 12 states. Terms: 3, 5, 7 years. Not intended for educational expenses. Late fee: lesser of 4% of payment due or $5. Not available in the following states: MS, NV. Max rates can be dependent on the state. MORTGAGES: Down payment between 10-50% on mortgages up to $3 million. No mortgage insurance even if one puts less than 20% down. Requirements: SoFi underwriting criteria, eligible state in which you purchased. Licensed to originate mortgages in 25 states and Washington, D.C. (as of April 2015). FOCUS: Prime and super-prime borrowers. Average borrower FICO score of 780 and income of approximately $150,000 (LendEDU - January 2016).

TIMELINE 2011

§  Launched (originally focused on student loan refinancing) 2012

§  Launched nationwide rollout of its Community Loan Program connecting alumni with students after initial success at Stanford.

§  Stops lending after demand for loans far outstripped supply from alumni 2013

§  Recommences lending after additional capital from alumni/institutional investors §  Expands selection of loan products to include 5, 10 and 15 year fixed interest loans §  Supported landmark deal to by Congress to tie student loan interest to market rates §  Offers assistance to borrowers in career transition. Marks first time a private lender

offers such services to student loan borrowers §  First rated securitization completed. First of its kind from P2P lender

2014 §  Closes $251 million securitization of refinanced student loans. S&P and DBRS rated

senior notes A, marking first such rating by S&P for a marketplace lender securitization

§  Surpasses $1 billion in loans funded. Fastest marketplace lender to reach such a milestone

§  Moves into home mortgages §  Completes $303 million securitization rated by S&P, Moody’s and DBRS. First

marketplace lender to receive investment grade ratings from S&P and Moody’s 2015

§  Branches out into personal loans §  Fourth securitization completed in January totaling $313 million §  Announces Parent Loans, an alternative to Federal Parent PLUS loans, other private

loans to help parents fund a child’s education §  Closed a $411 million securitization of student refinanced loans – it’s largest

securitization to date, and the highest rated §  Citizens Bank has bought $200 million of loans from SoFi and has committed to

buying $300 million more §  Prices another securitization at $418 million. First fintech company to earn AAA

DBRS Rating. The 6th such securitization to-date for the company §  Raised $1 billion – “the largest single financing round in the fintech space to date” §  Chinese social networking firm Renren Inc. completed an additional $150 million

preferred stock investment in SoFi. In April, the company said it owned 24% of SoFi, after $100 million invested

§  Surpassed $6 billion in funded loans across mortgages, personal loans, and student loan refinancing. First marketplace lender to reach $6 billion in under four years

2016 §  Surpasses 140,000 members and $9 billion in loans funded to date §  Launches Wealth Management for members §  Obtains Fannie Mae seller servicer status for mortgage §  No longer factors FICO scores into its qualification process for its student loan

refinancing product §  Becomes the first online lender to receive AAA rating from Moody's on a $380 million

offering backed by student loans

FundingRound


SeriesA September2011/March2012

$8million($4millioneach)/BaselineVentures,Innova?onEndeavors,RonSuber,UluVentures

SeriesB September2012 $77.2million/BaselineVentures,DCM,RenrenInc.

SeriesC April2014 $80million/DiscoveryCapitalManagement,PeterThiel,WicklowCapital,exis?nginvestors.

SeriesD February2015 $200million/ThirdPointVentures,WellingtonManagementCompanyLLP,Ins?tu?onalVenturePartnersandexis?nginvestors

SeriesE December2015 $1billion/SojBank,ThirdPointVentures,WellingtonManagementCompanyLLP,andothers

Hybrid Platforms: Marketplace & Balance Sheet

HEADQUARTERS: Chicago, IL CO-FOUNDERS: Al Goldstein (CEO), Paul Zhang (CTO), John Sun (CCO) LOAN ORIGINATION: WebBank UNSECURED PERSONAL LOAN CHARACTERISTICS: Fixed rate loans between $1,000 - $35,000. Terms: 24, 36, 48, 60 months. Fixed interest rates: 9.95% - 36% APR. Late fee (after 10 days): $25. Dishonored payment fee: $15. Avant has late fee forgiveness and will waive a late fee following three consecutive on time payments. No origination fee or prepayment penalty +450,000 customers worldwide.

TIMELINE 2012

§  Launched AS AvantCredit 2013

§  Issues first loan on January 1st §  Expands into the UK in Q3

2014 §  Becomes most funded Chicago company for 2014 after $200 million debt financing

agreement with Jefferies as lead 2015

§  Rebrands as Avant §  Launches Avant Institutional Marketplace - $400 million financing arrangement to

purchase newly originated loans led by KKR with Jefferies and Victory Park Capital §  Acquires the assets of ReadyForZero.com (personal financial management) §  Inaugural 144A securitization transaction providing Avant with $139 million in debt

financing §  KKR and Victory Park Capital securitize $175 million of Avant consumer loans

purchased via Avant’s Institutional Marketplace §  Announced $1 billion in loan originations since inception §  Year-over-year loan volume increased approximately 200%

2016 §  Partners with loanDepot “through an API integration that will expand access to credit

through a borrower referral powered by a seamless digital experience” §  Surpasses $3 billion in loan originations in just three years. Fastest online lender to

hit $3 billion §  Added Sheila Bair, former Chairwoman of the FDIC, to the Board of Directors §  Announces partnership with Regions Bank

FundingRound


SeriesA Q22013 $9million/AugustCapital,VictoryParkCapital

SeriesB Q32013 $25million/AugustCapital,QEDInvestors,VictoryParkCapital

SeriesC Q12014 $75million/TigerGlobalManagement,AugustCapital,QEDInvestors

SeriesD Q42014 $225million/TigerGlobalManagement,AugustCapital,DFJGrowth,RREVentures,PeterThiel,KKR&Co.(KohlbergKravisRoberts&Co.)

SeriesE Q32015 $325million/GeneralAtlan?c,JPMorganChase&Co.,BalyasnyAssetManagement,AugustCapital,TigerGlobalManagement,DFJGrowth,RREVentures

28

HEADQUARTERS: New York, NY FOUNDER: David Klein (CEO), Michael Taormina, and Jessup Shean LOAN ORIGINATION: CommonBond Lending LLC STUDENT LOAN REFI: Up to $500,000. Variable APR: 2.14% - 5.94%. Fixed APR: 3.50 - 7.74%. Hybrid APR: 3.79% - 6.23% (Fixed rate first 5 years, then variable for the last 5 years). All with 0.25% autopay discount. Requirements: CommonBond underwriting criteria, eligible state where CommonBond lends MBA LOAN: Max: full cost of attending the school. 10-yr fixed: 6.23% APR; 15-yr fix: 6.72% APR. All with autopay. Origination fee: 2% added to principle balance of the loan. Required: CommonBond underwriting criteria, attendance at one of 29 eligible MBA programs PERSONAL LOAN: $1,000 - $50,000. Variable: 4.49% – 11.34% APR; Fixed: 5.74% – 12.99% APR. All with 0.25% autopay discount No defaults or delinquencies in portfolio to date. $650 million raised in debt/equity since inception. Two securitizations to date with investment-grade ratings from Moody’s and DBRS.

TIMELINE 2012

§  Student loan pilot launched at Wharton 2013

§  National launch 2014

§  Surpasses $100 million in loans funded §  Introduced the industry’s first hybrid loan for its student loan product

2015 §  Launched its “Investor Marketplace” – a first-of-its-kind financial marketplace in

student loans, where qualified investors purchase loans directly on the CommonBond platform

§  Nelnet Inc., a leading student loan servicer, committed to purchasing at least $150 million of loans on the CommonBond platform

§  Completed $100 million in securitizations of student loans. First time Moody’s gave an investment-grade rating to a first-time issuer in marketplace lending

§  Closed $275 million in debt financing from Barclays, Macquarie Capital, and others. CommonBond surpasses $625 million in total funding to date, across both equity and lending capital

2016 §  Surpasses $500 million in funded loans §  Completes $150 million, investment-grade rated securitization led by Barclays and

Goldman Sachs §  Personal loan pilot launches

FundingRound


SeriesA September2013 $8.65million/TribecaVenturePartners,TheSocial+CapitalPartnership,VikramPandit,ThomasGlocer,andTomKalaris.

SeriesB September2015 $35million/AugustCapital,NycaPartners,VictoryParkCapitalandexis?nginvestors

29

A Marketplace for Consumer Finance

HEADQUARTERS: San Francisco, CA FOUNDER: Stephen Dash (CEO) LOAN ORIGINATION: CommonBond Lending LLC STUDENT LOANS: Fixed rates from 3.99% APR. Variable rates from 2.06% APR. REFINANCE STUDENT LOANS: Variable rates: as low as 2.13% APR. Fixed rates: 3.5% APR. PERSONAL LOANS: $500 - $40,000. Rates from 5.99% APR. A “multi-lender marketplace that allows borrowers to receive competitive loan options from its vetted lenders.” "To find a refinance through Credible, you must have more than $7,500 in private or federal loans (including PLUS loans) that are not currently in forbearance or deferment.... According to Credible’s historical data, a credit score below about 680 will likely require a co-signer." (Nerdwallet - July 2015)

TIMELINE 2012

§  Founded 2014

§  Launched with $2.7 million in seed funding 2014

§  Surpasses $100 million in loans funded 2015

§  Private student loan marketplace launched §  Partnered with American Medical Association, Society of Plastics Engineers, North

Carolina Medical Society, Nerdwallet, SimpleFi, and others §  Launches into personal loans. Marketplace will include Lending Club, Prosper,

Avant, Upstart and Pave

FundingRound


SeriesA September2015 $10million/SoulH?te,Founder&CEOofDianrong.comandCo-founderofLendingClub,withpar?cipa?onfromRonSuber,PresidentofProsper,andonlinelendingpioneerScodLangmack.

31

HEADQUARTERS: Dallas, TX FOUNDER: Sam Ellis (CEO) LOAN ORIGINATION: Funded off its balance sheet originally prior to Series A funding and launch of online marketplace. “What makes DriverUp different is that at origination, the loan is pre-funded by DriverUp before being put on the marketplace. This is a similar strategy that real estate crowdfunding companies employ because it allows for a better experience for the borrower and the dealer.” (Lend Academy – October 2015) MINIMUM INVESTMENT LEVELS: $100,000. DriverUp provides daily information on your investments. Investors receive monthly payments (net servicing fees). Investments are expected to be held by the investor until maturity. "Sierra will not maintain a secondary market for buying and selling any auto loan investment.“ AUTO FINANCE MARKET: $400 billion annually with total outstanding U.S. auto loans at more than $1 trillion. Yields from 7-9% across multiple economic cycles. Online marketplace for automotive financing “DriverUp is the first company that offers auto loans as an investment opportunity to accredited investors such as hedge funds, endowments, family offices, and high net worth individuals.” DriverUp is run by Dallas-based specialty finance company Sierra Auto Finance. Loans serviced by Sierra.

TIMELINE 2012

§  Sierra Auto Finance founded by Ellis 2015

§  Founded §  Launches online auto loan marketplace

2016 §  Appoints Match.com veteran Anthony Fratiani as chief technology officer

FundingRound


SeriesA February2015 $50million/EmeraldDevelopmentManagers,RREVentures.

SeriesB September2015 $20million/SFCapitalGroup,EmeraldDevelopmentManagers,RREVentures. 32

Income Smoothing

HEADQUARTERS: Oakland, CA CO-FOUNDERS: Jon Schlossberg (CEO), Quinten Farmer Mobile money management application. Offers low income workers interest-free credit in between pay periods. Service is free for first 30 days, then $3/week subscription charge covering Even's service. Automatic withdrawal from customer’s account every Friday. Requirements of the customer: job, bank account, and equipped with a smartphone. Application also manages customers money through the customer’s bank account, essentially ensuring the customer has a steady income even if unexpected things occur. Earn less than your average paycheck, Even provides interest-fee funding to bridge the difference. Earn more than your average paycheck and Even takes out some of the extra money as payback for down days. No incentive to offer loans to its customers. Still in pilot mode. Currently limited to income from one job per customer, and currently does not work for freelancers. The company plans to open up to freelancers in 2016. NOTABLE BACKERS: Keith Rabois (Partner, Khosla Ventures), Kevin Systrom (Co-founder and CEO, Instagram), Sam Lessin (Formerly VP, Product at Facebook), Michelle Wilson (Former VP & GC at Amazon), Tom Brown (Partner, Paul Hastings), Andrew Kortina (co-founder, Ven.mo)

TIMELINE 2014

§  Founded 2015

§  $1.5 million seed round investment led by Khosla Ventures and 12 other investors

Personal Credit with a Social Boost

HEADQUARTERS: Fort Worth, TX FOUNDER: Ken Rees (CEO) LOAN ORIGINATION: Balance sheet lender LOANS: (see chart below – as of January 2016 (MarketWatch)) Offers three products: RISE, a personal loan; Elastic, a paycheck advance; Sunny, a personal loan for U.K. customers. Elastic is offered by Republic Bank & Trust Company. Operates in the US, UK Transforming the non-prime lending industry. Rates starting a third lower than the standard payday loans. Credit scoring model: 11th generation, 10,000+ data points. “One of the first to develop a risk-based pricing model utilizing technology and risk analytics focused on the non-prime credit industry” According to its SEC prospectus, “Elevate's two U.S. products carry average annualized interest rates of 88 percent and 176 percent, according to the prospectus.” - CNBC $2.6 billion in loan originations, 1.3 million customers served

TIMELINE 2014

§  Launched, spun out from Think Finance §  Study released co-authored by Elevate on the financial reality of the “New Middle

Class”. Study finds that 71% of Americans have at least some debt, excluding mortgage debt

2015 §  February: Total loan originations now roughly $450 million §  As of March, the RISE product surpassed $500 million in loans to more than 224,000

customers. 62% of RISE customers have seen their rates drop due to positive payment behavior

§  Sarah Cutrona, chief counsel and EVP Compliance, selected to serve on the State Regulatory Registry Industry Advisory Council. Will help assist Board of Managers and the Nationwide Multistate Licensing System Policy Committee

§  Launches Sunny Plus in the UK with a monthly interest rate of 10.5% (half that of typical payday loan). Available to customers who wish to borrow £1,000 - 2,500 for a term of 14 months

§  Increased its credit facility with Victory Park Capital by $70 million to $385 million §  Hosted its second annual "Finding Common Ground" panels in an effort to "continue

developing better products for the millions of undeserved Americans that make up the New Middle Class." Elevate held its second panel in 2015

§  Elevate pushes new survey on the state of the middle class. Across all income levels, 35% of Americans reported experiencing financial difficulties within the past 6 months

2016 §  Was expecting to be the first venture-backed IPO of 2016, but postponed its IPO due

to difficult market conditions §  Taps Joan Kuehl as the company’s first chief information officer §  Saundra Schrock, a managing partner at Equanimity Leadership Solutions, LLC,

joined Elevate's Board of Directors

36

HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Sasha Orloff (CEO), Jacob Rosenberg (CTO, stepbrother) LOAN ORIGINATION: Balance sheet lender SINGLE-PAYMENT LOAN: $100 - $500. Terms: 7-45 days (vary by state) INSTALLMENT LOAN: Up to $1,000 for as long as a year (if repeat customer). Interest rates from 29%. Data reported back to all three major credit bureaus. LendUp also charges a loan fee, deferred deposit fee, and a fee for a returned customer payment which are all dependent on the regulatory of framework of the state in which a borrower lives. Orloff’s experience includes working in microfinance with the Grameen Foundation and the World Bank, as well as a variety of positions at Citigroup. Rosenberg’s experience includes CTO of Zynga, 80th employee at Yahoo Markets itself as a better alternative to payday loans that lowers fees, increases accesses to credit, and gives customers the chance to improve their credit history. Offers loans in 23 states currently and credit card nationally. The L Card is issued by Beneficial State Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Technology uses Fair Credit Reporting Act-compliant data sources to approve applicants with ability and willingness to repay. All products are based on a ladder that allows customers to validate and improve credit worthiness through repayment and completing financial literacy online courses. Looks to help customers with credit scores of less than 680 gain access to more affordable products

TIMELINE 2012

§  Graduated from Y Combinator accelerator having raised $4.5 million in seed financing from those including Andreessen Horowitz, Google Ventures and Kleiner Perkins Caufield & Byers

§  Launched publicly 2014

§  Secured $50 million credit facility from Victory Park Capital §  As of April 2014, LendUp raised $64 million in institutional funding and debt financing §  Opened up its API to other firms/organizations. API includes: underwriting,

transaction processing, customer service, collections and compliance, and notifications. Custom API for each partner

§  Partnered with Moneygram allowing LendUp borrowers to use MoneyGram’s Express Payment Service to repay their loans (offline). The service is available at 39,000 agent locations across the United States

2015 §  Partnered with Beneficial State Bank to offer the Personal Builder Loan in CA, OR,

and WA. The new type of loan includes loan amounts higher than typical payday loans, repaid over multiple months with payments reported to credit bureaus

§  Launched a nation-wide credit card product, the L Card 2016

§  Series B funding will help as the company expand the L Card, currently in beta, which provides functionality tailored to nonprime customers

§  In a blog post, CEO Sasha Orloff responded to the announcement by Google that it would ban ads for payday lenders offering APRs above 36%. In a long-explanation of LendUp's business, Orloff noted that LendUp has saved its customers more than $16 million in 2015, and, as of May 2016, saved customers a further $16 million. "More than 90 percent of our active users have access to credit-building loans within two years. And we've taken customers from having credit scores in the 300s two years ago to having a credit card today,“ he added

FundingRound


SeriesA November2013 $14Million/GoogleVentures,DataCollec?ve,QEDInvestors

SeriesB January2016 $50Million/SusaVentures,DataCollec?ve,GoogleVentures,QED,KaporCapital,VictoryPark,andothers.

37

HEADQUARTERS: Redwood City, CA CO-FOUNDERS: James Gutierrez and Gabriel Manjarrez CURRENT CEO: Raul Vazquez Formerly known as Progreso Financiero LOAN ORIGINATION: Balance sheet lender LOAN: $350 (starter loans) - $7,000 (repeat customers). Terms: 6 – 35 months. Fixed payments. Average APR: 36 percent – NYT (2014) “We schedule payments to match your pay period (usually every other week or two times a month) and calculate a payment amount we think you can afford based upon your income and debts/expenses.” New model for payday lending - lower rates across a longer term. Report accounts to Experian and TransUnion. Oportun is a CDFI with branches located in supermarkets, malls and neighborhoods. Operates in 180 locations. 1.3 million loans totaling more than $2.2 billion have aided roughly 690,000 customers as of December 31, 2015. Customers have saved nearly $350 million in interest and fees. 2012 FDIC Study: Nearly half of US Hispanics are under-banked or unbanked. “As of September 30, 2015, approximately 48 percent of all Oportun customers had no credit score when they first applied with Oportun.” Currently available in the following states: California, Texas, Illinois, Utah, Nevada.

TIMELINE 2005

§  Founded as Progreso Financiero, a platform dedicated to economic advancement of lower-income Hispanic families

2008 §  CFSI Catalyst Fund LP announced investment in Progreso Financiero

2009 §  Gutierrez, of Progreso Financiero, was one of the founding members of the Coalition

for New Credit Models in Washington, D.C. 2010

§  Certified as a Community Development Financial Institution (CDFI) 2011

§  150,000 microloans totaling $140 million lent to Hispanic customers 2012

§  Names Raul Vazquez CEO, Board Member §  TIO Networks Corp. expands bill paying options for the Hispanic community through

a partnership with Progreso Financiero 2013

§  Issued first securitization in June 2014

§  Provided 700,000+ in affordable loans totaling more than $1 billion for the Hispanic community, helping 370,000 individuals build credit. Average loan in 2014 is roughly$1,650 with a term of 14 months

§  Completes second ABS for $102 million. Bonds secured by a pool of the Company's installment loans

2015 §  Changes name from Progreso Financiero to Oportun §  Closes $90 million equity raise §  Announces that the company closed $112 million ABS, secured by a pool of

installment loans, and completed a $70 million whole loan flow sale program which closed in November 2014

§  Announces 4th securitization of $125 million of two-year, asset-backed bonds secured by a pool of its installment loans

§  Chris Larsen, co-founder and CEO of Ripple Labs, steps down from Oportun Board of Directors

§  Oportun CEO Raul Vazquez appointed to Federal Reserve’s new Community Advisory Council

2016 §  Appoints Match.com veteran Anthony Fratiani as chCompletes 5th securitization of

roughly $125 million of two-year, asset-backed bonds secured by a pool of its installment loans

§  Intuit appoints Raul Vazquez to its Board of Directors.ief technology officer


SeriesB March2007 $4.4Million/GreylockPartners

SeriesC May2008 $11Million/GreylockPartners,CFSI,CRV,MadroneCapitalPartnersandothers.

SeriesD June2010 $28Million/MadroneCapital,GreylockPartners,CRVandDAGVentures.

SeriesE January2011

$20Million/CoreInnova?onCapital,GreylockPartners,MadroneCapitalPartners,SVBCapital,CRV,DAGVentures,andothers.

38

Purchase Financing

HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Max Levchin (CEO), Nathan Gettings (Palantir Technologies co-founder), and Jeffrey Kaditz. LOAN ORIGINATION: Cross River Bank LOAN: Closed-end installment loans. Terms: 3, 6, or 12 months. Cross River Bank pays the merchant on the consumer's behalf, while the consumer promises to repay the principle amount plus any additional finance charges. Fixed APR: 10% - 30% (0% APR offered at select merchants). First payment due roughly 15 days after Cross River Bank pays a merchant. Customers can take out multiple Affirm loans at once, though each loan evaluated separately. Focuses its lending on the millennial market, individuals under the age of 35. Alternative to credit card via installment loans. More than 500 merchants who offer its loans as customers check out. Affirm has identified more than 70,000 personal qualities that it thinks could predict a user’s likelihood of paying back a loan

TIMELINE 2013

§  Launched 2014

§  Announces Affirm Split Pay – splits purchase price and small amount of interest into monthly payments for the customer. Merchant receives payment up front, Affirm takes on the credit risk. – Competition with PayPal’s Bill Me Later service

2015 §  Foray into education by providing installment loans to students attending coding

bootcamps. Terms: 12 to 18 months with rates of 6% to 20% for some of the bootcamps and 6% to 30% for General Assembly, and most loans will require no payments in the first six months

§  Acquires LendLayer, a startup that provides lending for accelerated learning program. LendLayer has partnered with a number of coding camps offering payment plans for accelerated learning programs

§  Partnership with Shopify to expand Affirm brand across US-based Shopify stores 2016

§  Acquires personal finance management app Sweep, Inc. - the "first step" in moving beyond point-of-sale financing. "A new, more powerful product under the Affirm brand will combine the technologies and visions of both companies and is scheduled for release later this year"

§  Appoints eBay Executive Carl Gish as Affirm’s first CMO §  Announces partnerships with Expedia.com and Eventbrite offering monthly

payments for travel and events

FundingRound


SeriesA - -

SeriesB June2014 $45million/KhoslaVentures,LightspeedVenturePartnersandNycaPartners

SeriesC May2015 $275million/SparkCapitalGrowth,Jefferies,AndreessenHorowitz,KhoslaVenturesandLightspeedVenturePartners.

SeriesD April2016 $100million/FoundersFundwithexis?nginvestorsincludingLightspeedVenturePartners,SparkCapital,KhoslaVentures,AndreessenHorowitz,Jefferiesandothernewinvestors.

40

HEADQUARTERS: La Jolla, CA CO-FOUNDERS: Derek Barclay (President) and Kristin Slink (COO) CURRENT CEO: Steve Connolly LOAN ORIGINATION: First Electronic Bank LOANS: $1,000 - $25,000. Discount rates: As low as 1%. Interest rates from 13.99%. Lower minimums for LoanHero’s lease programs starting at $350. Loan terms: 12-60 months (depending on loan amount). Low interest rates powered by marketplace lenders and credit unions.Operates in the US, UK FOCUS: Prime consumers. Industries: consumer goods, home improvement, auto services and repair, medical devices and services, other (funeral, pet… etc.) Allows merchants to offer no interest promotions (if paid in full) for 6, 12, and 24 months. Interest accrues during promotional period, but if purchase balance is paid in full by end of the period and a consumer has made all required monthly payments, then interest is waived. "Point-of-sale financing is a $500 billion industry that is ripe for disruption." - Derek Barclay Incubated out of EvoNexus Operational in 5 states, growing to 50 states "in the very near future“ Currently in talks with partnering with undisclosed lender.

TIMELINE 2014

§  Founded 2015

§  Secures $1.7 million in seed funding and $20 million in debt financing for its platform §  Launches platform in April

2016 §  Received an additional $2.5 million in Seed funding from Alsop Louie Partners and

Mucker Capital §  Expands footprint to 50 states in partnership with First Electronic Bank §  AAMCO Partners With LoanHero, offering consumer financing options to its

franchisees

41

HEADQUARTERS: San Jose, CA BILL ME LATER FOUNDER: Gary Marino. Marino is currently SVP, Americas and Credit Products at PayPal. LOAN ORIGINATION: BalaLine of credit provided by Comenity Capital Bank, who also determines a borrower’s creditworthiness and pays the merchant upfront CREDIT: If approved, credit line of $250 minimum. APR: 19.99% (standard purchases and cash advances). Minimum interest charge: $2. No annual fee, though there is a late fee (up to $35 ($25 for first time offenders)) and a return check fee (up to $25). APR and minimum interest charge is waived if consumer pays the purchase in full by the due date (at least 25 days after close of each billing cycle). PROMOTIONS:

§  "No payment and No interest": Purchasing an individual item at $99 or above, you can have the option of making no payments during deferred interest period if the individual purchase is paid in full within 6 months.

§  “No interest payments” if you meet the minimum monthly payments during deferred interest period (6+ months depending on what's disclosed when the transaction is made). If you decline or fail to fully pay off the purchase during promotional period, 19.99% APR will be charged to account from original posting date.

§  “Easy Payments” which allows users to pay for purchases in monthly increments. Two types: Easy Payments + No Interest Purchases – no interest if balanced paid in full by the end date; Financed Easy Payments Purchases – subject to interest at an APR disclosed at the time of purchase not to exceed 19.99%. Must meet minimum purchase amount.

Users must have a PayPal account. PayPal Credit available at most stores that accept PayPal. Millennials now account for 33% of PayPal Credit users, up from 25% two years ago. (Forbes – December 2015)

TIMELINE 2000

§  I4 Commerce founded 2002

§  I4 Commerce launches Bill Me Later 2006

§  I4 Commerce secures $640 million debt financing from Citigroup §  $27.4 million Series A from Azure Capital Partners, Crosspoint Venture Partners,

Kingdon Capital, Upfront Ventures 2007

§  I4 Commerce Changes Name to Bill Me Later, Inc. §  Amazon invests an equity stake in Bill Me Later

2008 §  eBay acquires Bill Me Later for $1.2 billion ($820 million in cash, $125 million in

outstanding options) §  Prior to acquisition, Bill Me Later was pondering going public

2012 §  PayPal opens up Bill Me Later to small, mid-sized online businesses. No interest

financing for 6 months on purchases of $99 or more 2014

§  Bill Me Later rebrands to PayPal Credit §  Launches in the UK, Germany

2015 §  Expands credit offering – allowing retailers to decide the number of months for

repayment and interest rate that works best for their customers. Can also choose interest-free credit options for the first time

§  PayPal settles with the CFPB for $25 million after complaints arose that it had illegally enrolled customers into Bill Me Later

§  Thanksgiving – Cyber Monday: PayPal Credit used for more than $166 million in purchases, an increase of 32% from last year. Fastest growing parts of PayPal’s business

§  PayPal 10-Q: “In May 2015, we completed an arrangement with certain investors under which we sold participation interests in certain consumer loans receivable originated using our PayPal Credit products with a gross book value of approximately $708 million”

2016 §  PayPal 10-K: “As of December 31, 2015 and 2014, approximately 53.6% and 54.2%,

respectively, of the pool of U.S. consumer receivables and interest receivable balance was due from U.S. consumers with FICO scores greater than 680, which are generally considered "prime" by the consumer credit industry”

§  PayPal 10-Q: “The total consumer loans receivable balance as of March 31, 2016 and March 31, 2015 was $4.0 billion and $3.6 billion, respectively, reflecting a year over year increase of 11%. The increase in consumer loans receivables was due to the growth in the portfolio of loans receivable outstanding arising from consumers who chose PayPal Credit as a funding option”

Lending via Your Social Network

HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Skylar Woodward (CEO), Jean Claude Rodriguez-Ferrera Massons and Matt Flannery Matt and Skylar were founding members of Kiva LOAN ORIGINATION: Your “Puddle” Contribute as much as you like to your "Puddle". Borrow up to 5X the amount contributed and pay back the money borrowed in 3 or 6 months. No credit score required. Fixed transaction fee: $3 (assessed in part every month). “Over the course of each borrowing cycle, you will be charged no less than $3.00” Additional monthly fee as well, and dependent on the amount borrowed. Late fee: 2X the monthly fee. No interest beyond a set monthly fee. “If your borrow is less than five times your contribution, you will be assessed fees equivalent to the borrow and contribution that would have given you access to the pooled funds.” Modeled after Rotating Savings and Credit Associations, which allow typically poor individuals to organize and sustain their own credit and savings system without the need to access formal banking channels. Puddle moves this model online. Platform essentially allows you to borrow through your social network (hence the need for Facebook). The platform allows you to rate the trust of members of your “puddle” and manage relationships. Self-regulating system. Unlike other peer-to-peer lending platforms, lenders do not make a profit. Incentive to participate is that lenders might themselves need funding one day.

TIMELINE 2012

§  Launched with $2 million in seed funding from Andreessen Horowitz, Google Ventures and Draper Associates

2015 §  Two-year trial as of February with repayment rates above 98%

44

Education Financing

HEADQUARTERS: New York, NY CO-FOUNDERS: Zander Rafael (CEO), Amit Sinha (CFO), Vishal Garg (Chairman) LOAN ORIGINATION: Climb Investco, LLC which pursues its own licensure in each state LOANS: Average size is $10,000. Fixed rate APR: 5% - 15% (may include an origination fee) for tuition or education expenses. Terms: 2-5 years determined by affordability. Interest only grace period while a student is in school, pay down principle after graduation. Applying with a co-borrower or selecting auto pay will help reduce the rate. UNDERWRITING: incorporates future income projections for each program funded as well as over 10,000 other data points: full debt-to-income, affordability, historical repayment, income and job stability layered on top of full school underwriting. Average increase in salary post loan: ~$20K. Result of underwriting being driven by ROI to students. Largest funder of skills based education and coding bootcamps in the USA

§  Funds students in skills based training and high ROI education– partner schools teach: welding, coding, IT, medical, construction, manufacturing skills etc. as well as alternative / online education platforms delivering college and grad school at drastically reduced prices

§  School partners assessed for quality and structure aligns school incentives with student outcomes – school and lender both work with best interest of student in mind

TIMELINE 2014

§  Founded in New York by a team that previously worked together to launch Future Finance, which is now the largest private student lender in Europe

§  First loans funded at two initial schools in Q3 §  Automatic underwriting engine launched in Q4 §  10 school partners at the end of 2014

2015 §  $3.1 million initial funding from 1/0 Capital, Ridge Road and Seer §  Raised $400 million forward flow agreement from a top 3 global asset manager §  School platform launched to manage financial aid for school partners §  Partnered with 40 schools at end of 2015

2016 §  Living expense loans launched §  Instant decisions launched for over 75% of applicants §  Partnered with over 50 schools in Q2 2016

FundingType Announced Amount/Involvement

IniWalFunding

2015 $3.1millionfrom1/0Capital,RidgeRoadandSeer

ForwardFlowAgreement

2015 $400millionfromtop3globalassetmanager 46

HEADQUARTERS: New York, NY FOUNDER: David Klein (CEO), Michael Taormina, and Jessup Shean LOAN ORIGINATION: CommonBond Lending LLC STUDENT LOAN REFINANCING: Up to $500,000. Variable APR: 2.14% - 5.94%. Fixed APR: 3.50 - 7.74%. Hybrid APR: 3.79% - 6.23% (Fixed rate first 5 years, then variable for the last 5 years). All with 0.25% autopay discount. Requirements: CommonBond underwriting criteria, eligible state where CommonBond lends MBA LOANS: Max: full cost of attending the school. 10-yr fixed: 6.23% APR; 15-yr fix: 6.72% APR. All with autopay. Origination fee: 2% added to principle balance of the loan. Required: CommonBond underwriting criteria, attendance at one of 29 eligible MBA programs PERSONAL LOANS: $1,000 - $50,000. Variable: 4.49% – 11.34% APR; Fixed: 5.74% – 12.99% APR. All with 0.25% autopay discount No defaults or delinquencies in portfolio to date. $650 million raised in debt/equity since inception. Two securitizations to date with investment-grade ratings from Moody’s and DBRS.

TIMELINE 2012

§  Student loan pilot launched at Wharton 2013

§  National launch 2014

§  Surpasses $100 million in loans funded §  Introduced the industry’s first hybrid loan for its student loan product

2015 §  Launched its “Investor Marketplace” – a first-of-its-kind financial marketplace in

student loans, where qualified investors purchase loans directly on the CommonBond platform

§  Nelnet Inc., a leading student loan servicer, committed to purchasing at least $150 million of loans on the CommonBond platform

§  Completed $100 million in securitizations of student loans. First time Moody’s gave an investment-grade rating to a first-time issuer in marketplace lending

§  Closed $275 million in debt financing from Barclays, Macquarie Capital, and others. CommonBond surpasses $625 million in total funding to date, across both equity and lending capital

2016 §  Surpasses $500 million in funded loans §  Completes $150 million, investment-grade rated securitization led by Barclays and

Goldman Sachs §  Personal loan pilot launches

FundingRound


SeriesA September2013 $8.65million/TribecaVenturePartners,TheSocial+CapitalPartnership,VikramPandit,ThomasGlocer,andTomKalaris.

SeriesB September2015 $35million/AugustCapital,NycaPartners,VictoryParkCapitalandexis?nginvestors

47

HEADQUARTERS: San Francisco, CA Student loan refinance in particular CO-FOUNDERS: Louis Beryl (CEO), Benjamin Hutchinson (COO) LOAN ORIGINATION: Balance sheet lender STUDENT LOAN REFINANCING: Beginning at $5,000. Fixed rates from 3.50% APR to 7.05% APR (with autopay) and variable rates from 2.13% - 5.35% APR (with autopay). Interest rates on variable loans are capped at 8.95%, 9.95% or 11.95% depending on length of the loan. Requirements: Debt is from paying for a Title IV accredited school, employed or have a written job offer, primary borrower on the student loans that the borrower is refinancing, not requesting new loans for future schooling, and other requirements. Offered in 37 states and Washington, D.C. PERSONAL LOANS: $2,000 - $50,000. Interest rates from 5.25% - 12% APR (merit based interest rate determined during approval process). Term 1-3 years. Requirements: Reside in a state in which Earnest lends, and other requirements. Offered in 37 states and Washington, D.C. Earnest manages and services the loan throughout its life. Make 6 consecutive on-time payments, can request to skip a payment (minimum payment on the loan will rise slightly as a result). Merit-based credit scoring algorithm with 80-100,000 data points. Big push into lending for coding bootcamps.

TIMELINE 2013

§  Founded 2014

§  Launched. Received $15 million seed funding from Andreessen Horowitz, First Round Capital, Maveron, Atlas Venture, and others

§  Debuts personal loans with “merit-based” interest rates §  Ended 2014 with $8 million in personal loans lent

2015 §  Debuts student loan refinancing §  Secured $200 million in debt financing led by New York Life

2016 §  Opened a $150 million warehouse facility with Goldman Sachs. Total warehouse

facilities to date: $350 million §  Completes first securitization, a $112 million student loan refinancing, led by Credit

Suisse. Loans are A-rated by DBRS §  Completes second securitization totaling $225 million, becoming the "only student

loan refinancer to price consecutive securitizations in the first half of 2016 so far." Total securitization issuance now totals nearly $340 million

§  Introduced Earnest for the iOS

FundingRound


SeriesA January2015 $17million/Maveron,AndreessenHorowitz,FirstRoundCapitalandotherfirmswithpriorinvestment.

SeriesB November2015 $75million/BaderyVentures,AdamsStreetPartners,Maveron,otherinvestors.

HEADQUARTERS: San Francisco, CA FOUNDER: Mike Cagney (CEO) LOAN ORIGINATION: SoFi Lending Copr. STUDENT LOAN REFINANCING: Variable rate: 2.14% - 5.94% APR (with AutoPay), Fixed Rate: 3.50% - 7.74% APR (with AutoPay). “Currently, interest rates for SoFi variable rate student loans are capped at 8.95% or 9.95%, depending on the term.” Terms: 5, 7, 10, 15, 20 years. REQUIREMENTS: Minimum loan amount: $5,000 (or higher depending on the state). MOHELA is SoFi’s third-party loan servicer for student loans. Focus: Prime and super-prime borrowers. Average borrower FICO score of 780 and income of approximately $150,000 (LendEDU - January 2016)

TIMELINE 2011

§  Launched (originally focused on student loan refinancing) 2012

§  Launched nationwide rollout of its Community Loan Program connecting alumni with students after initial success at Stanford.

§  Stops lending after demand for loans far outstripped supply from alumni 2013

§  Recommences lending after additional capital from alumni/institutional investors §  Expands selection of loan products to include 5, 10 and 15 year fixed interest loans §  Supported landmark deal to by Congress to tie student loan interest to market rates §  Offers assistance to borrowers in career transition. Marks first time a private lender

offers such services to student loan borrowers §  First rated securitization completed. First of its kind from P2P lender

2014 §  Closes $251 million securitization of refinanced student loans. S&P and DBRS rated

senior notes A, marking first such rating by S&P for a marketplace lender securitization

§  Surpasses $1 billion in loans funded. Fastest marketplace lender to reach such a milestone

§  Moves into home mortgages §  Completes $303 million securitization rated by S&P, Moody’s and DBRS. First

marketplace lender to receive investment grade ratings from S&P and Moody’s 2015

§  Branches out into personal loans §  Fourth securitization completed in January totaling $313 million §  Announces Parent Loans, an alternative to Federal Parent PLUS loans, other private

loans to help parents fund a child’s education §  Closed a $411 million securitization of student refinanced loans – it’s largest

securitization to date, and the highest rated §  Citizens Bank has bought $200 million of loans from SoFi and has committed to

buying $300 million more §  Prices another securitization at $418 million. First fintech company to earn AAA

DBRS Rating. The 6th such securitization to-date for the company §  Raised $1 billion – “the largest single financing round in the fintech space to date” §  Chinese social networking firm Renren Inc. completed an additional $150 million

preferred stock investment in SoFi. In April, the company said it owned 24% of SoFi, after $100 million invested

§  Surpassed $6 billion in funded loans across mortgages, personal loans, and student loan refinancing. First marketplace lender to reach $6 billion in under four years

2016 §  Surpasses 140,000 members and $9 billion in loans funded to date §  Launches Wealth Management for members §  Obtains Fannie Mae seller servicer status for mortgage §  No longer factors FICO scores into its qualification process for its student loan

refinancing product §  Becomes the first online lender to receive AAA rating from Moody's on a $380 million

offering backed by student loans

FundingRound


SeriesA September2011/March2012

$8million($4millioneach)/BaselineVentures,Innova?onEndeavors,RonSuber,UluVentures

SeriesB September2012 $77.2million/BaselineVentures,DCM,RenrenInc.

SeriesC April2014 $80million/DiscoveryCapitalManagement,PeterThiel,WicklowCapital,exis?nginvestors.

SeriesD February2015 $200million/ThirdPointVentures,WellingtonManagementCompanyLLP,Ins?tu?onalVenturePartnersandexis?nginvestors

SeriesE December2015 $1billion/SojBank,ThirdPointVentures,WellingtonManagementCompanyLLP,andothers

III. Small Business Finance

50

Marketplace Platforms: Retail Investor Focus

HEADQUARTERS: Reston, VA CO-FOUNDERS: Mark Rockefeller (CEO), Mickey Konson (COO) Social lending marketplace connecting small businesses with investors. LOAN ORIGINATION: Loans funded from auction and may not equal the amount requested LOANS: $2,000 - $100,000. Maximum loan amount cannot exceed 20% of annual business revenue. Term: 3, 6, 12, 18, 24, 36 month term loans. Deduction of fixed, weekly payment from bank account. Requirements: In business for at least a year (sometimes 6 months) or $100,000 in annual revenue, incorporated, reasonable credit. Origination fee either 3.95% or 4.95%. Failed payment fee of $10. Borrowers also subject to additional $10 fee if payment not received in 7 days from the due date. A loan may be approved for an amount lower than the full requested amount by the Borrower Member. Focus on "affinity lending," paying particular attention to the small business needs of U.S. veterans. “We have the opportunity to define our legacy through a collective act of “second service” to our country. By starting and running successful businesses, we become a catalyst for the real, sustained economic growth that our country desperately needs.” – Mark Rockefeller (CEO) Two investment opportunities (qualified investors must have StreetShares account):

§  Streetshares RegA+: Invest no more than 10% of individual net worth or annual household income. Streetshares “become the first lender in the country to be qualified by the U.S. Securities and Exchange Commission (SEC) to use funds from public investors to back loans to small businesses.”

§  Streetshares Pro: Must be accredited. May not invest more than 10% of individual net worth, exclusive of home, home furnishings, automobile.

Minimum investment increments: $25. BOARD OF ADVISORS: Raj Date (former Deputy-Director of the CFPB), General (Ret) George Casey, Pete Hartigan (Formerly on the founding team at SoFi), Former SEC Commissioner Troy A. Paredes

TIMELINE 2013

§  Founded 2014

§  $1.2 million in seed funding provided by Accion 2015

§  Debuts StreetShares Auto-invest feature allowing retail investors to program their small business investments to make automatic bids based on loan requirements and risk tolerance

§  Secures $200 million in funding from Direct Lending Investments, Community Investment Management and Eagle Bank Corp, with a focus on funding veteran small businesses. Announces pre-approvals for 6 month loan and two year loan products

2016 §  Becomes the first online lender in the US to receive SEC approval for its

crowdlending product created through Regulation A+ of the JOBS Act


SeriesA March2016 $7million/PivotInvestmentPartners,FenwaySummerVentures 52

Marketplace Platforms: Accredited and/or institutional investors (solely)

HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Denise Thomas (CEO), Steve Pelletier (COO) LOAN ORIGINATION: Cross River Bank LOANS: $100,000 - $5 million. Interest rates: 8% - 12%. Funding in 30 days or less. Terms: 3-7 years. Available nationwide. No prepayment penalties on loans under $1 million. No personal collateral. Origination fee: 4.5%. Processing fee: 0.5%. “An optional 6-month interest-only period is standard for all new unit financings.” LOAN CHARACTERISTICS: Average loan size: $399,980. Term: 67.6 months. Interest rate: 8.66%. Borrower equity (new units): 27.54%. BUSINESS BORROWER CHARACTERISTICS: Debt to income: 23.09%. Asset coverage ratio: 14.1x. Debt service coverage ratio: 2.0x. FICO: 742. Franchise loan marketplace allows accredited and institutional investors to invest in franchise loans. Securities issued through Apple Pie Finance.

TIMELINE 2013

§  Founded 2014

§  Announced its franchise loan marketplace. Received $3.77 million in seed funding from Freestyle Capital, QED Investors, Signia Venture Partners and angel investors. Marketplace will launch in Q1 2015

2015 §  Marketplace launched §  Secured $28 million in debt capital commitments from various individuals and

institutions §  As of April, $40 million in capital demand from borrowers §  As of October, Apple Pie has partnered with 28 brands for franchise loans

2016 §  Names Geoff Thompson as General Counsel. At present, ApplePie has partnered

with 35 brands


SeriesA April2015 $6million/SigniaVenturePartners,FreestyleCapital,CampOneVentures,QEDInvestors,ProsperMarketplacePresidentRonSuber.

54

HEADQUARTERS: New York, NY CO-FOUNDERS: David Haber (CEO), Peyton Sherwood (CTO) LOAN ORIGINATION: According to Haber, “we're not actually a balance sheet lender, we are structured more as a marketplace, but we have today at least one large institutional buyer of our loans, which is Jefferies.” (Lend Academy interview – December 2015) TERM LOANS: $50,000 - $500,000. Origination fee of 3% of approved loan. Loans funded by community of accredited investors, institutions. Interest rates: 6% - 23%. APR: 8% - 25%. Terms: 1-3 years. Semi-monthly payments AVERAGES: Borrow: $170,000. APR: 11%. Terms: 3 years. Credit Score: 730. (Forbes – June 2015) REQUIREMENTS: Based in US (except ND, NV, SD, TN, VT), more than two years operating history, generate more than $200,000 in annual revenue sales, personal guarantee and collateral against business assets. Those with credit score of 640 or more likely to qualify. INVESTORS: Spark Capital, Jefferies, homebrew, Founder Collective, Collaborative, Red Swan, Eagle Cliff, and others.

TIMELINE 2013

§  Founded and launched 2014

§  $1.5 million seed funding from Founder Collective 2015

§  As of June: No defaults or delinquencies §  Partners with Front Desk providing its customers with access to small business

loans 2016

§  Partners with Booker, a cloud-based business management service that helps small businesses create a seamless experience for customers purchasing goods and services

§  Partners with ICB, the world's largest bookkeeping membership organization, allowing ICB USA members affordable financing solutions for their clients

FundingRound


SeriesA June2015 $10million/JefferiesGroup,SparkCapitaland12otherinvestors.

55

HEADQUARTERS: New York, NY CO-FOUNDERS: Brett Baris (CEO, Board Member), Mark Rambler (President and COO, Board Member) LOANS: $10,000 - $250,000. Terms: 1-3 years. Fixed interest rates starting at 8%; one-time origination fee of 2% - 6%. Monthly repayments. Fully-amortizing term loans. No pre-payment fee. FOCUS: Prime credit small business owners. REQUIREMENTS: 6+ months in business, currently generating revenue, business owner has strong personal credit, no commercial or personal bankruptcies within the last 5 years, and not located in the following states: NV, ND, SD, VT. Platform matches small business lenders with institutional investors. Borrowers sourced from partners including Dun & Bradstreet. PARTNERS: Dun & Bradstreet, FIS Global

§  Dun & Bradstreet: a leading provider of credit services to small businesses in the U.S. Can refer qualified businesses in need of funding to Credibility. (Source borrowers)

§  FIS: Source banks that are interested in providing lender capital to fund loans originated on the platform. (Source investors)

TIMELINE 2015

§  Launched platform in April §  Partnered with First Associates Loan Servicing to provide full servicing to Credibility’s

platform §  Signed the Small Business Borrower’s Bill of Rights §  Signed a data partnership with Orchard §  John Birge joined as CCO. Previously focused on small business risk management

at American Express §  Brian Starke joined as CTO; former Principal Engineer at Bread Finance where he

built their loan origination platform

56

HEADQUARTERS: London, UK (U.S.-based operations: San Francisco, CA) CO-FOUNDERS: Samir Desai (CEO), Sam-Hodges (U.S. Managing Director), Christian Grobe (CE Chief Operating Officer), Matthias Knecht (CE Managing Director), James Meekings (UK Managing Director), Andrew Mullinger (Head, global credit and risk). LOAN ORIGINATION: FC Marketplace, LLC BUSINESS LOANS: $25,000 - $500,000. Interest rates: 5.49% - 27.79% (depending on the life of the loan). Terms: 1-5 years. Origination fee: 1.49% - 4.99%. Late payment fee: 10% of missed payment. Insufficient funds fee: $35. GLOBALLY: Global marketplace lender connecting small businesses with thousands of investors.$2 billion lent to more than 15,000 businesses, 15,000 loans funded, 50,000+ investors. “Funding Circle's average customer generating annual revenue of $1.7 million and borrowing $120,000 for three-and-a-half years.” (SF Business Times – March 2016)

TIMELINE 2010

§  Launched in the UK 2013

§  Launched in the U.S. 2014

§  Rolled out a new risk tier for borrowers who have faced difficulty in obtaining loans, and an opportunity for investors to see greater returns and diversification

§  Since US launch, lending in the US increased 500% with expectations that lending will top $100 million by the end of the year

§  Acquires LeapPay integrating the company’s technology into the firm’s underwriting process

2015 §  Launches fractional loan marketplace. Investors can buy fractions of loans from

$25,000 - $500,000, with terms between 1-5 years, and coupon rates between 6-21%. Minimum opening balance of $50,000 required, and minimum investment per borrower payment dependent note of $500

§  Victory Park Capital will finance up to $420 million in loans through the platform in the UK and US over the next three years

§  Partners with the National Small Business Administration §  Co-author and original signer of the Small Business Borrowers’ Bill of Rights

unveiled in Washington, DC §  Referral partnership with HR Block announced §  Acquires Zencap, a German marketplace lender, pushing FC’s platform into Europe §  Surpassed £1 billion in lending to UK small businesses, +46,000 jobs. Funding Circle

UK announces plan to float £150 million fund for small business investment, the first peer to peer company to look at floating a fund. In November, the SME Income Fund listed on the London Stock Exchange and raised £150 million with focus on US, UK small businesses

§  Funding Circle UK announced that all new loans will be issued at fixed interest rates set by Funding Circle

§  Partnership with the US Department of Commerce’s Minority Business Development Agency (8 million minority owned businesses)

2016 §  Plans to boost its Bay Area staff by 10 percent. The company currently employs 190

people in San Francisco and 550 globally §  “Hodges tipped his hand that big news on bank partnerships is also on this year's

agenda.” (SF Business Times – March 2016) §  Announce Jörg Asmussen, former executive board member of the European Central

Bank, will join Funding Circle's Board §  Talks have advanced regarding Funding Circle SME Income Fund Ltd participation in

a European Investment Bank financing project §  Funding Circle, Lending Club, Prosper Marketplace launch Marketplace Lending

Association

FundingRound


SeriesA April2011 $4.14million/IndexVentures

SeriesB April2012 $16million/IndexVentures,UnionSquareVentures

SeriesC October2013 $37million/Accel,IndexVentures,RibbitCapital,UnionSquareVentures

SeriesD July2014 $65million/IndexVentures,AccelPartners,UnionSquareVenturesandRibbitCapital.

SeriesE April2015 $150million/DSTGlobal,BaillieGifford,afundmanagedbyBlackRock,SandsCapitalVenturesandTemasek 57

HEADQUARTERS: San Francisco, CA FOUNDER: Renaud Laplanche CURRENT ACTING CEO: Scott Sanborn (also President), Executive Chairman: Hans Morris Tom Green, VP, Small Business, overseas Lending Club’s business loan product. LOAN ORIGINATION: WebBank LOANS: $5,000 - $300,000. Fixed interest rate: 5.9% - 25.9% (loans) APR: 8-32%. One-time origination fee: 0.99 – 6.99%. Terms: 1-5 years. No collateral needed for loans under $100,000. Variable rate for lines of credit: 6.25% - 21.85%. REQUIREMENTS: 2 years in business, $75,000 in annual sales, no bankruptcies or tax liens, own at least 20% of the business w/ fair/better personal credit. Credit score 600+. TYPICAL LC BORROWER: credit score of 700, 11 years in business, $1 million in annual revenue. (NerdWallet – February 2016) NOTABLE BOARD MEMBERS: John Mack, the former Morgan Stanley chief executive, and Lawrence Summers, the former US Treasury secretary, Mary Meeker of Kleiner Perkins Caufield & Byers, and others.

TIMELINE 2006

§  Founded 2014

§  Emergence into small business lending. Begin to facilitate unsecured small business loans. Initial Public Offering

§  Raised roughly $1 billion, valuing the company at $8.5 billion 2015

§  Partnerships including with Google, Alibaba, BancAlliance, HomeAdvisor, Citigroup, Sam’s Club, Opportunity Fund… etc.

§  Response submitted to Treasury’s RFI on marketplace lending §  New credit product for SMEs unveiled (small business lines of credit) providing

“convenient, flexible and affordable credit” §  Co-author and original signer of the Small Business Borrowers’ Bill of Rights

unveiled in Washington, DC 2016

§  10-K: “As of December 31, 2015, our marketplace facilitated approximately $16.0 billion in loans since it first launched in 2007, of which approximately $3.3 billion were invested in through notes issued pursuant to a shelf registration statement (the Note Registration Statement), $5.5 billion were invested in through Certificates issued by the Trust, and $7.2 billion were invested in through whole loan sales”

Balance Sheet Platforms

HEADQUARTERS: New York, NY CURRENT CEO: Daniel DeMeo LOAN ORIGINATION: WebBank (small business term loans and flexible payment TrakLoan), CAN Capital Merchant Services, Inc., (Merchant Cash Advances), CAN Capital Asset Servicing, Inc. (longer term, 2-4 year, installment loans) SMALL BUSINESS TERM LOAN: $2,500 - $150,000 (single business), up to $250,000 (multiple locations). Terms: 4 - 24 months. Requirements: gross revenue of $4,500+, in operation for greater than 4 months. MERCHANT CASH ADVANCE: $5,000 - $150,000 Purchase Price paid to merchant. Collection of purchased receivables based on fixed percentage of daily payment card sales. INSTALLMENT LOAN: Loans from $50K - $100K. Terms: 2, 3 or 4 year terms. Monthly repayment schedule. Rates starting at 12.9%. Origination fee: 2.99%. Requirements: 1+ years in business and $350,000 in annual sales. Does not operate in: CT, DE, MI, MN, MT, ND, NV, NJ, NY, RI, SD, IN, VT. TRAKLOAN: Flexible payment loans (based on fixed percentage of payment card sales) from $2,500 to $150,000. Focused on providing capital access to underserved Main Street businesses. Since launch in 1998, provided access to over $6 billion in capital to small businesses. Daily Remittance Platform - evaluates business-specific data from a wide variety of banking, credit card processing and other sources. Platform for collecting daily loan payments or remittances of purchased receivables and using that data, and other information, to service and underwrite customers. CAN Capital Small Business Health Index - Focus on small and mid-sized business climate and financial product options. Real-time platform and risk scoring models to assess and facilitate the provision of capital to SMBs in the US. Over 175,000 funding transactions since 1998

TIMELINE 1998

§  Launched. First company to develop and apply a Daily Remittance Platform 2012

§  $30 million funding round led by Accel with participation from QED Investors and Ribbit Capital

2013 §  Capital Access Network rebrands as CAN Capital §  Integrates online lending engine with PayPal allowing working capital funds to be

deposited into merchant PayPal accounts §  Surpassed $3 billion in capital provided to small businesses since inception §  Debuts CAN Mobile Funder tool for small businesses generating faster closing times

through the use of mobile technology 2014

§  Reaches $4 billion funding milestone §  Raised $33 million in funding led by Meritech Capital Partners with increased

participation and ownership from existing investor Accel Partners. Meritech and Accel were joined in the funding round by Ribbit Capital and QED Investors

§  Launch CAN Connect “a full suite of Application Program Interfaces (APIs) that enables third-party providers, such as payment processors and providers of point of sale (POS) systems and cloud accounting software, to offer their small business customers access to working capital based on available merchant data”

§  Closed its first securitization totaling $200 million and rated investment grade by S&P and DBRS

§  Partnered with Yodlee allowing funding via CAN Capital through Yodlee Small Business Solution

2015 §  Partnered with Worldpay allowing Worldpay merchants to take advantage of CAN

Capital’s finance programs. Also partnered with iPayment providing 150,000 small businesses working with iPayment the ability to obtain flexible financial solutions

§  Secures $650 million senior credit facility led by Wells Fargo §  Provided access to more than $5 billion in capital to small businesses

2015 §  Surpassed $6 billion in capital provided to small businesses since inception §  Launched the Innovative Lending Platform Association with Kabbage and OnDeck

60

HEADQUARTERS: Troy, MI CO-FOUNDERS: Ryan Rosett, Edan King, and Erik Stamell CURRENT CEO: Glenn Goldman LOAN ORIGINATION: WebBank (business loans, majority of its business) LOANS: can range anywhere from $5,000-$250,000. APR from 9.99% Two products:

§  Working Capital product provides borrowers with up to $250,000 in financing. Terms: 6-17 months. Fee (one-time): 2.5% of total loan. Daily payments. Qualifications: at least 6 months in business with gross revenue of $10,000 per month.

§  Business Expansion product provides borrowers with up to $250,000 in financing. Terms: 18-24 months. Fee (one-time): 2.5% of total loan. Rate (equivalent to APR): 9.99% - 36%. Weekly payments.

“The Small Business Loan is made by WebBank, a Utah-based industrial bank who has partnered with Credibly, while the joint AloStar Bank of Commerce, WebBank and CapitalSource credit facility provides significantly increased capacity for Credibly to lend to businesses throughout the United States. This on-balance sheet capacity complements Credibly's marketplace whole loan sale program.” (BusinessWire – June 2015) Operates the Credibly Small Business Index – calculates the friendliness of select US cities to small businesses and contains information on many different types of small businesses across multiple industries.

TIMELINE 2010

§  RetailCapital founded (originally as a joint venture with Michigan-based Crestmark Bank)

2013 §  Released its scoring model which looks at a businesses overall health not just

traditional metrics like a credit score 2014

§  Former head of CAN Capital Glenn Goldman announced as new CEO §  Secured new round of investment from Flexpoint Ford, LLC §  Acquired 100% ownership of its joint venture structure from Crestmark Bank

2015 §  RetailCapital rebrands as Credibly §  Announces partnership with WebBank for its lending program §  Closed a $40 million credit facility backed by AloStar and CapitalSource to facilitate

the launch of the Credibly Small Business Loan which provides capital for small businesses while allowing them the flexibility to determine repayment (daily, weekly, monthly)

§  Launched a new educational platform, In.Credibly.com, to help businesses evaluate working capital needs with guidance and productivity tips

§  Launched version 2.0 of its scoring model §  As of June, Credibly provided $275 million in funding to thousands of small

businesses nationwide 2016

§  Announced the closing of a $70 million credit facility with SunTrust Bank and AloStar Bank of Commerce

HEADQUARTERS: New York, NY FOUNDER: Michael Finkelstein (CEO) LOAN ORIGINATION: Balance sheet lender. Asset-based loans LOANS: $500,000 to $5 million. Rates: 14% - 19%. Terms: 6-36 months. “A data-driven lending platform focused on providing working capital and supply chain financing solutions to small and mid-size enterprises.” No hidden fees, the firm does not control cash, 100% inventory only loans available, not FICO based.

TIMELINE 2014

§  Secures $2 million seed investment led by GLI Finance Limited §  Executive team and advisory board assembled §  Launches

2015 §  Secures $50 million credit facility from Victory Capital, its first institutional credit

facility. Platform launches Q2 2015 §  In September, Forbes publishes “How Big Data Flows Will Change Business

Lending” and highlights The Credit Junction tech platform 2016

§  In March, Inc. profiles The Credit Junction and how it turned around small women-owned business, “How Walsh Electrical Rebounded From the Brink of Bankruptcy”

§  Partnered with the Small Business & Entrepreneurship Council to offer its 100,000+ members fast, flexible, and efficient access to capital as well as educational workshops

§  Forbes piece on TCJ, “How the Credit Junction Uses Data-Driven Intimacy to Change Commercial Lending,” notes that the platform has issued more than $40 million in lines of credit since the platform came online in Q2 of 2015

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HEADQUARTERS: New York, NY CO-FOUNDERS: Sam Graziano (CEO), Doug Gordon (EVP, Head of Partnership Development) LOAN ORIGINATION: Balance sheet lender. “As a direct lender, Fundation commits our own capital to finance your customers’ small business loans; we hold them on our balance sheet, and manage the loan servicing.” LOANS: $20,000 - $500,000. APR: 7.99% - 29.99% (inclusive of origination and closing fees). Terms: 1-4 years. Can lend up to $1 million, but this requires additional due diligence. Payments twice a month. Late fee: “greater of 5% of unpaid portion of scheduled payment of $35.00.”

§ Short term loans: Up to $150,000. Terms: 1-2 years. § Long-term loans: Up to $500,000. Terms: 1-4 years.

REQUIREMENTS: Have to have at least 3 employees (including yourself); 2+ years in business, $100,000+ of annual revenue, good personal credit. Loans are not offered in the following states: ND, SD, NV, VT.

TIMELINE 2011

§  Founder 2013

§  Launched its lending platform 2014

§  CEO sat on the panel “Accessing Alternative Capital Panel” at the US Chamber of Commerce Small Business Summit

§  Partners with Kukui Corporation, a developer of marketing software solutions for the automotive repair industry

§  Joint venture agreement (undisclosed $) between Garrison Investment Group, Solel Investment Group, The Leo Group with Fundation providing capital to deploy additional lending to small businesses

2015 §  Partnership with Regions Financial Corp. Expands offering across 16 states in the

South, Midwest and Texas 2016

§  Appoints Barry Feierstein as COO §  Partnership with BancAlliance, a network of more than 200 community banks across

40 states, to expand access to loans for small businesses §  Launched the Coalition for Responsible Small Business Finance along with Breakout

Capital, the Business Backer, Paynet, and Orion First

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HEADQUARTERS: Atlanta, GA FOUNDER: Rob Frohwein (CEO) LOAN ORIGINATION: All Kabbage business and personal loans are issued by Celtic Bank. Ongoing line of credit up to $100,000. Terms: 6 or 12 months. No interest. Fee: 1.5% - 12% of selected loan amount. Pay back 1/6 (6mth loan), 1/12 (12mth loan) of the total loan + monthly fee. Third party partners may charge additional 1.5% each month. Minimum loan of $5,000 for a 12 month term. Requirements: One year in business, $50,000+ in annual revenue. Offers the only fully automated, online lending platform designed to support continuous customer data monitoring. Focused originally on funding small e-commerce companies, before expanding in 2013.

TIMELINE 2010

§  Kabbage selects GDS Link solution DataView360 to provide nontraditional data aggregation and enhanced underwriting capability

§  Officially launches to provide working capital to small businesses 2011

§  Begins funding e-commerce businesses in May 2012

§  Partners with UPS as well as new credit facility. Partnership allows small businesses to direct UPS to share shipping information with Kabbage, to further bolster underwriting metrics and reduce costs of lending

§  UPS launches its Small Business Solutions portal providing financial services to small businesses powered by Kabbage

2013 §  Secures $75 million credit facility from Victory Park Capital with participation from

Thomvest Ventures §  Kabbage expands small business financing to include offline businesses. Prior to the

expansion, the company had provided $85 million in short-term financing to e-commerce companies from 70,000+ advances since inception

§  Partners with Intuit to use its Quickbooks data to fund businesses §  Partners with Stripe, becoming the first company to underwrite Stripe’s business

customers based on Stripe's payment processing data 2014

§  Secures $270 million credit facility from Guggenheim Securities §  Attained BBB rating on $136 million of class A notes that are part of the $270 million

securitized credit facility. Rating provided by Kroll Bond Rating Agency §  Launches Karrot Personal Loans - the first fully automated personal loan marketplace in

the industry §  Launched mobile platform – “the only app in the industry that allows businesses to access

funds on-the-go from their mobile device” 2015

§  Announces expansion of its credit facility to more than $900 million §  Launched Kabbage Card, giving businesses the ability to pay with items at the point of

sale. "This is the first time that an online lender has extended its product to the physical point of sale...." Can be used at physical or online businesses that accept MasterCard

§  Kabbage began licensing its lending platform – the Kabbage Platform -- allowing other organizations to reach more customers while providing “an outstanding end-to-end customer experience.” Kikka Capital (Australia), ING (Spain), Santander (UK), FleetCor, and Sage have since launched online small business lending through the Kabbage Platform, allowing Kabbage to extend its service worldwide

§  Partners with Experian, Orchard Platform, and MasterCard §  As of October, the platform was funding more than $5 million per day to small businesses

2016 §  Announces that its business customers have securely connected 1M+ data accounts to its

lending platform. Originates $2 billion in SMB loans through the Kabbage Platform since its launch

§  Partnered with the National Federation of Independent Businesses opening up the Kabbage platform NFIB’s 325,000+ members

§  Launched the Innovative Lending Platform Association with CAN Capital and OnDeck §  At present, Kabbage has 300+ employees and is used by more than 70,000 businesses


SeriesA January2011

$6.65million/BlueRunVentures,DavidBonderman,founderofTPGCapital,WarrenStephens,CEOofStephensInc.andtheUPSStrategicEnterpriseFund.

SeriesB August2011 $17million/MohrDavidowVentures,BlueRunVentures,DavidBonderman,WarrenStephens,UPSStrategicEnterpriseFund,JimMcKelvey,co-founderofSquare,andothers.

SeriesC September2012

$30million/ThomvestVentures,UPSStrategicEnterpriseFund,MohrDavidowVentures,BlueRunVentures,WarrenStephens,andDavidBonderman.

SeriesD May2014 $50million/SojBankCapital,TCW/CratonandLumiaCapital,DavidBonderman,WarrenStephens,UPSStrategicEnterpriseFund,PeterThomson’sThomvest,BlueRunVentures,MohrDavidowVentures,amongothers.

SeriesE October2015

$135million/ReverenceCapitalPartners,ING,SantanderInnoVentures,Sco?abank,China'sYuanCapital,Japan'sRecruitStrategicPartners,BlueRunVentures,UPSStrategicEnterpriseFund,ThomvestVentures.

HEADQUARTERS: Seattle, WA FOUNDER: Andy Sack. CURRENT CEO: BJ Lackland LOAN ORIGINATION: balance sheet FOCUS: Technology firms: Software, SaaS, services, digital media, other online/digital businesses. FINANCING: From $50,000 - $2 million. Qualify for a loan up to 33% of your annualized revenue run-rate. REQUIREMENTS: At least $15,000 in monthly revenue in each of the last three months. Gross margins of at least 50%. Product is best suited for companies making $200,000 in annual revenue. Profitability: Not required. Repayment based on percentage of monthly revenue (between 1-10%), with a target of a 3-5 year payback term. Debited monthly via ACH (generally). No personal guarantees as loan is secured against a company’s assets. Instead of a fixed loan payment, it’s a variable monthly payment . Revenue-based financing - a blend between bank debt and venture capital. “Market leader in revenue based financings” “The structure of RBF is often non-dilutive to founders and does not require a board seat.” Has made 130 financings with more than 90 companies since inception.

TIMELINE 2010

§  Founded §  Launched RevenueLoan product

2011 §  Rebranded as Lighter Capital from Revenue Loan

2012 §  New CEO announced

2014 §  Completed its 50th RevenueLoan

2015 §  Raised $100 million from Community Investment Management, which will be used to

fund roughly 500 investments in tech firms. Expands financing threshold from $1 million to $2 million

FundingRound


SeriesA June2010 $6million/Founders'Co-op,VoyagerCapital

SeriesB November2015 $9million/VoyagerCapital,SummitCapital,andindividualinvestors,includinganinvestmentfromLighterCapital’sChairman,JeffSeely. 65

HEADQUARTERS: Los Angeles, CA CO-FOUNDERS: Rob Snow (CEO), Steve Dervenis (Executive Chairman) Specialty finance company focused on equipment financing, in particular LOAN ORIGINATION: all of the loans originated and distributed through the Mainspring platform are originated, underwritten and serviced by the platform’s portfolio lending companies (Blue Ridge Financial). “Mainspring Funding is a platform allowing qualified investors to have access to our affiliates loan originations and links potential borrowers to our partner companies lending products.” EQUIPMENT FINANCE: Secured loans with fixed interest rates with terms between 12-60 months. Site inspections for loans of $25,000 or more. Loans over $100,000 require two years full financial statements while loans over $250,000 require 3 years full financial statements. INVENTORY FINANCE: Terms between 12 to 36 months, with up to 100% financing for inventory invoices. Requirements include: 2 years time in business, 635+ FICO Score for all loans. For loans over $25,000 – site inspection and 3 months of bank statements. Loans over $100,000 require two years full financial statements. WORKING CAPITAL: Loan size: $50,000 - $100,000 (dependent on borrower's time in business). Fixed rate loans with terms between 12-36 months. Site inspections performed. Loans can be added to equipment finance loans "for soft costs as well.“ Requirements include: 2 years time in business, 635+ FICO Score, 3 months banks statements and site inspection. Mainspring is a wholly-owned subsidiary of Buttonwood Capital Management – a private equity firm focused on specialty finance companies and technology platforms focused on loan origination and distribution. “In addition to Mainspring Funding, Buttonwood owns majority or minority interests in Carillon Capital, LLC and the small business lender, Blue Bridge Financial.” Platform allowing qualified investors to have access to its affiliates (Blue Bridge Financial) loan originations and links potential borrowers to its partner companies lending products. Over $100 million in loans have been originated nationwide to-date through the platforms affiliates. “Applications are accepted from businesses operating in the 48 states of the Continental U.S.”

TIMELINE 2014

§  Formation of Buttonwood Capital Management, a specialty finance holding company 2015

§  Partnered with Orchard allowing the company to use Orchard’s platform and technology to reach greater numbers of institutional investors. Orchard has been “tremendously helpful in opening doors, and helping investors out there understand what we do. The process of bringing new investors on board is still a time consuming process.” - Rob Snow

2016 §  Launches enhanced platform providing borrowers and qualified investors with "direct

access to loan products directly from affiliated partners“

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HEADQUARTERS: New York, NY FOUNDER: Founder: Mitch Jacobs CURRENT CEO: Noah Breslow LOAN ORIGINATION: Majority of loans funded on OnDeck’s balance sheet. Hybrid model: while loans are mostly held on balance sheet, they’re also sold to institutional investors through the OnDeck private marketplace. SHORT TERM LOANS: Up to $250,000. Terms: 3-12 months. Rates: As low as 9% Total Interest Percentage. Average: 19% Total Interest Percentage. LONG TERM LOANS: Up to $500,000. Terms: 15-36 months. Rates: as low as 5.99% Annual interest rate. Average: 30% LINES OF CREDIT: Up to $100,000. APR: 13.99% - 39.9%. Maintenance fee of $20 a month (waived for the first 6 months if a borrower draws $5,000 in the first 5 days) ORIGINATION FEE TERM LOANS: 2.5% - 4% of loan amount (first loan); 1.25% - 3% of loan amount (second loan); 0% - 3% of loan amount (third loan). QUALIFY FOR TERM LOAN: In business at least 1 year, $100,000+ gross annual revenue, at least one owner with 500+ personal credit score. For line of credit: in business at least 9 months, $75,000 gross annual revenue, a majority owner with at least 600+ score.

TIMELINE 2007

§  Founded 2008

§  OnDeck launched across 45 states 2011

§  Launched The OnDeck Score®, a proprietary small business credit scoring system, to provide alternative scoring method to gauge the overall health and creditworthiness of small businesses

2012 §  Reported that UK firm sought to purchase OnDeck for $250 million, but negotiations

faltered over price §  Secured nearly $100 million in new debt commitments ($80 million credit facility by

Goldman Sachs, $17 million venture debt loans from SF Capital, Lighthouse Capital Partners)

2014 §  Initial Public Offering. Raised $200 million at a $1.3 billion valuation. At the time, the

largest venture-backed tech exit since Tumblr and the largest ever for NY §  Partnership with BBVA Compass, marketing OnDeck loans to its small business

customers §  Surpassed $1 billion in total capital delivered to small businesses resulting in $3.4B in

economic activity and 22,000 jobs created; top 5 industries served include: restaurants, auto shops, personal care, building equipment contractors, building services

§  Achieves first investment grade, non-SBA, online lending industry’s securitization of small business loans totaling $175 million and rated by DBRS

2015 §  Opened small business loan marketplace to institutional investors called OnDeck

Marketplace®. Jefferies now able to purchase up to $500 million in small business loans through the new OnDeck Marketplace® institutional investor platform

§  Expands further outside the US with launch in Australia and formal launch in Canada; announces partnership with Commonwealth Bank of Australia

§  Releases updated report detailing its first $3 billion in loans, which generated $11 billion economic impact and led to the creation of 74,000 jobs nationwide

§  Expands licensing partnership with the AEO and participating non-profit community lenders in order to improve access to capital for small businesses in underserved communities

§  Partnerships with Prosper and Angie’s List in order to provide small business funding §  Expands partnership with Intuit. Intuit’s new QuickBooks Financing Line of Credit product

is powered by the firm’s customer data and OnDeck’s technology. Since 2013, OnDeck has been the top financing provider on the Quickbook’s financing platform

§  Partners with JPMorgan Chase. Program to allow Chase to offer loans to its 4 million small business accounts using OnDeck’s technology platform and Score framework. Product will carry Chase’s branding and funds will come from JPM’s balance sheet

2016 §  Launches Transatlantic Policy Working Group with Innovate Finance and the Innovative

Lending Platform Association with Kabbage and CAN Capital §  Surpasses $4 billion in total capital delivered to small businesses – more than 50,000

firms across 700 industries

FundingRound


SeriesA 2006 $2million/FirstRoundCapital,VillageVenturesandContourVenturePartners

SeriesB Dec.2007 $15million/RREVenturesledtheround

SeriesC Dec.2010/April2011

$20million/SAPVenturesandSFCapitalGroupledtheround

SeriesD Feb./Apr.2013

$60million/Ins?tu?onalVenturePartnersledtheroundandGoogleVenturesandPeterThielpar?cipated

SeriesE March2014 $77million/TigerGlobalManagementledtheroundandIns?tu?onalVenturePartners,GoogleVentures,PeterThielandSAPVenturespar?cipated

HEADQUARTERS: Bethesda, MD CURRENT CEO: Will Tumulty The company is controlled by Rockbridge Growth Equity LOAN ORIGINATION: Firm conducts its own underwriting and supplies direct funding through its own bank financing. Loans up to $500,000 SMALL BUSINESS LOANS: Approval in less than 24 hours. MERCHANT CASH ADVANCE: Starter and Premium MCA programs. Businesses can qualify for 85% - 250% of monthly credit card sales. Repayment based on daily credit card revenue. All credit scores are considered. 90% of clients participate in this more than once. PREFERRED RATE LOAN: $25,000 - $100,000. Monthly fee of 1.25% of the original funding amount. Terms: 9-18 months. Requires FICO of 660+, in business for 4+ years, other criteria. For MCAs, RapidAdvance takes a fixed percentage of credit card sales. Approval time from submission: 48 hours. Entire funding process within 7 days. Requirements: Physical location, been in business for at least three months, process $2,500 in receivables a month, one-year left on lease (Biz News Daily - October 2015). Executive Chairman Jeremy Brown sits on the Board of Directors of the Small Business Finance Association The firm has provided over $1 billion in financing to more than 30,000 small business nationwide.

TIMELINE 2005

§  Founded 2008

§  Enters Canadian marketplace 2011

§  Announces expansion of small business lending products 2012

§  Closes new financing facility from Wells Fargo supporting merchant cash advance, small business lending operations

2013 §  Acquires health care financing providers Professional Merchant Advance Capital,

LLC; Professional Merchant Advance Capital §  As of July, the company has extended $500 million to tens of thousands of business

owners since 2005 §  Rockbridge Growth Equity, LLC, an affiliate of Quicken Loans, acquires Rapid

Financial Services, LLC (doing business as RapidAdvance) 2015

§  The National Small Business Association (NSBA) launched a new partnership with RapidAdvance to provide its members with access to capital

§  Will Tumulty named new CEO. Former CEO Jeremy Brown promoted to Executive Chairman

§  Has filed multiple lawsuits alleging follow-on loans by competitors to a current Rapid Advance customer who then defaults with RapidAdvance is a form of tortious interference

The darker shaded areas represent higher lending totals 68

HEADQUARTERS: Charleston, SC “Hybrid finance” – focus less on credit score and more on overall health of the small, mid-sized business. CO-FOUNDERS: Hunter Stunzi (President), Chris Mettler (SVP of Operations) LOAN ORIGINATION: Balance sheet lender. Snapcap funds 92% of the loans approved. “We do not broker out, compare or auction your application off to the highest bidder.” LOANS: $5,000 - $250,000. Terms from 1-18 months. Available to those with credit scores 500+ (based on small business loan calculator). Vanishing Interest Rate™ program to customers who payback their loans on time. Express Review - proprietary technology that scores a small business based on a few pieces of information: annual revenue, contact info, time in business, location. Do not rely on credit scores. Funded $115 million in loans in the past year. Since inception – the company has provided funding to companies in 375+ industries across the 50 states.

TIMELINE 2012

§  Launched 2015

§  Released an infographic on the type of business owners turning to online small business loans based on 14,000 online applications. Online retailers were the third-highest business category applying for loans, while home-based businesses represented 45% of SnapCap’s loan applications

§  Debuts “Express Review” option to its application process to provide qualified small businesses with instant funding decisions

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HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Ryan Gilbert (Executive Chairman, Co-Founder), Sean O’ Malley (Co-Founder) and Evan Singer (President at SmartBiz) SmartBiz is the #1 online marketplace for SBA loans. The company’s sophisticated software streamlines the SBA loan application and origination process. Small businesses can now apply online and get funds in as fast as 7 days while banks can make SBA loans more efficiently than ever before LOAN ORIGINATION: From preferred SBA lenders (3 lenders as of 2015) LOANS: $30,000 - $350,000. Variable interest rates: 6.25% (Prime Rate plus 2.75%) for loans $50,000 - $350,000; 7.25% (Prime Rate plus 3.75%) for loans $30,000 - $49,000. Term: 10 years. Fees: 2% referral fee of the loan amount and 2% packaging fee of the loan amount. Loans above $151,000 - SBA guarantee fee of 2.25%. Bank closing costs could add $300+, including standard bank fees. USE OF LOAN PROCEEDS:

§  $30,000 to $350,000 (working capital, new equipment purchases, business debt refinancing, and real estate purchases).

TYPICAL BORROWER: 2+ years in business, $50,000 to $5 million in annual revenue. 1-40 employees AVERAGE FICO SCORE AMONG BORROWERS: 705. Average revenue: $1 million. (NerdWallet - February 2016) More than $140 million in SBA loan applications funded since launch.

TIMELINE 2013

§  SmartBix soft launches in October 2014

§  Billfloat changed name to Better Finance – hard launched SmartBiz with focus on helping business owners apply for SBA 7(a) loans from $30,000 up to $350,000.

§  Smartbiz announced 4 new distribution partners: California Business Bank in Los Angeles, Yahoo!, Xero and ePay.

2015 §  Better Finance honored as fastest growing private company in San Francisco and

the Bay Area. Growth of 3000% over the past three years

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A Marketplace for Small Business Finance

HEADQUARTERS: New York, NY CO-FOUNDERS: Rohit Arora (CEO), Ramit Arora (President) Matches small business borrowers with lenders. Service provider who vets the viability of potential borrowers and then connecting them with lenders. Arrange funding between $5,000 - $5,000,000 (depending on the type of loan) UNDERWRITING/CLOSING FEES: For most non-bank financing products there is an underwriting fee (typically $250 - $400 depending on deal size), which is payable when the transaction closes. For bank financing products, a closing fee is assessed when the transaction is closed. Both fees dependent on the size and type of transaction and other factors. Operates Biz2Credit Small Business Lending Index which tracks lending from small/big banks, institutional lenders, alternative platforms. Followed closely by the SBA, and the other lenders, government agencies and the President's Council of Economic Advisers. Index analyzes roughly 1,000 loan applications on its platform. Biz2Credit sees almost half of all loan applications are made via mobile units Arranged more than $1.4 billion in small business loans for 100,000+ companies. Biz2Credit network consists of 1.6 million users and 1,300 pre-screened lenders.

TIMELINE 2007

§  Founded. Backed by Nexus Venture Partners 2008

§  Launched online portal 2011

§  Launched Biz2Credit Small Business Lending Index 2013

§  Announced the platform has arranged more than $1 billion in financing §  Platform has more than 1,200 big banks, small banks, credit unions, microlenders,

and alternative lenders, with 1.6 million users 2014

§  Received $250 million commitment from Direct Lending Investments §  Partnered with Paychex to create the Small Business Loan Resource Center,

providing an online resource for small business owners to access more than 1,000 lenders

2015 §  Adds SME Financial Score Simulator Tool to BizAnalyzer – allowing small business

owners to capture a personalized snapshot of their business health §  Default rates of borrowers on the platform less than 1% §  Average business using Biz2Credit platform is 7 years old, and generate $2 million in

revenue 2016

§  Partners with Advantage Funding providing access for small businesses through equipment-backed loans

§  Partners with Tata Capital Partner to expand access to financing for small businesses in India. Tata Capital is the "flagship financial services company" of the $100+ billion Tata Group

§  Small Business Lending Index April 2016: Small and large Banks ($10 billion+ in assets) approved more than 48% and 23% of loan applications, respectively. Alternative lenders approved 60% of loans

§  Releases "Best Small Business Cities in America" study, which found San Jose, CA to be the best small business city in America

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HEADQUARTERS: New York, NY FOUNDER: Stephen Sheinbaum (CEO) Formerly Merchant Cash and Capital – was predominately focused on merchant cash advances until the launch of Bizfi marketplace and subsequent rebranding to Bizfi. PRODUCTS INCLUDE:

§  Short-term funding: $3,000 - $500,000. Terms: 3-24 months. Requirements include: Limited documentation, no collateral, perfect credit not required, most industries accepted.

§  Medium- term loan: $25,000 - $500,000. Terms: 1-5 years. Requirements include: No prepayment penalties, no collateral, low rates and flexible terms.

§  SBA Loan: $5,000 - $350,000. Terms: 5-10 years. Requirements include: Minimum 2 years in business, collateral required above $25,000.

§  Invoice Financing: $5,000 - $100,000. Terms: Until invoice satisfied. Requirements include: minimal documentation.

Bizfi: “is the premier FinTech company combining aggregation, funding and a participation marketplace on a single platform for small businesses.” Bizfi marketplace includes 15 “fully integrated partners” and 30 “non-integrated partners.” (BusinessWire – March 2016) Bizfi, along with its family of companies, has provided in excess of $1.6 billion in financing to more than 29,000 small businesses across the United States since 2005.

TIMELINE 2005

§  Founded 2006

§  Merchant Cash and Capital launches as merchant advance company purchasing future credit and debit card receipts

2008 §  Patriot Group, LLC provides $17 million credit facility §  Announces the company has originated more than $100 million

2011 §  Announces completion of a new $25 million senior debt facility provided by Comvest

Capital and Community National Bank 2012

§  Establishes disaster relief program for small businesses in the wake of large, devastating storms

2013 §  Releases study that finds that small businesses lack storm preparedness plans one-

year after Superstorm Sandy §  Released another study that finds small businesses continue to struggle to find

financing in the years since the Great Recession §  Releases another study on small business perceptions and concerns with

Obamacare. Announced the launch of ASAP (Automated Submission and Pre-Approval System) – providing instant pre-approvals and contracts through faster speed and accuracy

2014 §  Secures term loan to $75 million through a consortium led by Comvest Partners.

MCC’s total debt facilities now roughly $100 million 2015

§  Announced the company has originated more than $1 billion with over 20,000 companies served nationwide. Average funded amount of roughly $40,000

§  Launches Bizfi – an online marketplace that allows small businesses to compare funding options from more than 35 partners for different sources of capital

§  Rebrands as Bizfi from Merchant Cash and Capital §  Launched an API and a white label solution “which will enable partner companies to

offer direct lending solutions to their small business customers” §  Secures $65 million in debt financing from Metropolitan Equity Partners §  Originates $142 million in financing in Q4 2015

2016 §  Over $1.4 billion provided to 27,000+ businesses §  Western Independent Bankers partners with Bizfi providing WIB clients with access

to the Bizfi platform §  First quarter 2016: Originated more than $140 million in financing to 3,605 small

businesses - a 49% YoY increase in originations

HEADQUARTERS: New York, NY CO-FOUNDERS: Jared Hecht (CEO), Rohan Deshpande, Andres Moran Hecht was co-founder of GroupMe Online marketplace connecting small business borrowers with best available financing from partnered lenders. Over 30,000 businesses have applied for financing using Fundera. Facilitated around 2,200 loans since inception. Fundera is paid by its partnered lenders if customer successfully applies for a loan through its platform. Takes 1% to 4% origination fee from the lending firm. These are some of the lowest fees to borrowers in the industry. PARTNERS INCLUDE: 20+ of the most reputable online lenders, including: BlueVine, The Credit Junction, CAN Capital, Funding Circle, Kabbage, OnDeck, FundBox, Dealstruck, and Lending Club. In 2016, they also launched American Express and Chase credit cards. They will also be bringing on traditional financing institutions. More than 2,500+ small businesses funded.

TIMELINE 2014

§  Launched 2015

§  Co-author and original signer of the Small Business Borrowers’ Bill of Rights unveiled in Washington, DC

§  Began releasing quarterly report on the state of online small business lending 2016

§  Released its two-year anniversary report in February detailing the company's growth §  The platform facilitated 2,200+ loans totaling $115 million to small businesses in its

first two years §  Announced a partnership with PaySimple. PaySimple customers can use its

Fundera-powered loan center to access funding from dozens of small business lenders

FundingRound


SeriesA January2014 $3.4million/Publicpolicyques?ons:SVAngel,KhoslaVentures,LererVentures,andFirstRoundCapital.AngelinvestorsRobWiesenthal,StraussZelnick,DavidTisch,andDavidRosenblad

SeriesB September2015 $11.5million/SusquehannaGrowthEquity,QEDInvestors,KhoslaVentures,FirstRoundCapital,andotherini?alinvestors.

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HEADQUARTERS: Mountain View, CA CO-FOUNDERS: Scott Cook and Tom Proulx. CURRENT CEO: Brad Smith Sasan Goodarzi, SVP and general manager of Intuit's Small Business Group. “QuickBooks Financing is a matchmaker that matches small businesses with financing solutions based on their specific needs and preferences. With the business owner’s consent, lenders on the QuickBooks Financing platform can see the complete picture of the small business through the company’s books.” QUICKBOOKS FINANCING PRODUCTS INCLUDE:

§  Invoice financing: $500 - $25,000. Term: 3 months. Fees: 5-7%. Works through Fundbox .

§  Line of credit: $5,000 - $250,000. Term: 6+ months. Interest rate: 5-25%. Borrow up to a certain pre-approved limit. Can be either secured (collateral) or unsecured.

§  Short-term loans: $2,500 - $500,000. Interest rates start at 14%. Terms: 3-24 months. "Although rates might start as low as 14%, the average rate tends to be higher and varies depending on your business revenues, business history and credit rating.“

§  Term loan: $25,000 - $1 million. Interest rate: 5% - 30%. Term: 1-5 years. Likely costs could include: origination fee, loan packaging fee, service fees & closing costs.

QuickBooks Financing currently has about 12 partners – ranging from short-term lenders to traditional financial institutions. Over $400 million in financing to 25,000+ businesses since inception

TIMELINE 1983

§  Founded 1993

§  IPO 2013

§  Begins to experiment with small business financing – originally branded Intuit Loan Finder

§  Intuit introduces QuickBooks Financing and begins onboarding lenders onto platform 2014

§  Intuit CEO Brad Smith meets with U.S. President Barack Obama, signs the White House Small Business Supplier Financing Pledge. As of July 2014, 10% of Intuit's suppliers are small businesses

2015 §  Intuit teams up with OnDeck, to launch the QuickBooks Line of Credit with lower

rates (8.9% - 19.9%), and loans funded in 24 hours. Launch includes $100 million small business lending fund to back the new product

§  Fundbox partners with Intuit to launch QuickBooks Invoice Financing, eliminating the need for credit checks and additional paperwork through the use of QuickBooks data and Fundbox technology

§  Partners with Kiva to provide financing to underserved small businesses through the QuickBooks Financing platform

75

HEADQUARTERS: South Jordan, UT CO-FOUNDERS: Brock Blake (CEO) and Trent Miskin (CTO) Marketplace matching borrowers looking for business financing options with active banks, credit unions, and alternative lending sources. The nation’s leading small business loan marketplace makes small business lending simple by aggregating over 75 business lenders onto on easy-to-use platform, accelerating the lending process, and providing the small business owner with transparent and trusted experience. Partnerships with Staples, GoDaddy, American Express, Lendvantage, SBE Council, Lending Club, Rapid Advance, Lending Tree, UPS Store, LegalZoom, and many others. Requirements to getting a loan typically include 6 months of current business account bank statements, mortgage or landlord verifications, as well as other requirements based on loan type, amount and duration. Basic guidelines to receive options include at least a credit score over 550, no bankruptcy in the past 3 years, gross revenue averaging $10,000 a month for at least 6 months, current on mortgage or rent payment, and other qualifications depending on the loan product.

TIMELINE 2011

§  Launched §  Secures $2 million in debt financing from Square 1 Bank §  Demonstrated its loan matching technology at FinovateSpring §  Announces that its matchmaking technology will now be free for business owners,

compared to $99 a month originally §  Joins Startup America Partnership

2014 §  Lendio officially launched its small business loan marketplace division in April §  Lendio funds $12.4 million in loan volume

2015 §  Acquires Business Bounce assets bringing Lendio to the East Coast in NYC §  Staples launched lending service "Staples Business Loans" powered by Lendio,

offering more than 20 different funding options. A few months later, Staples Business Loans surpass a million dollars of funding for small businesses

§  Lendio’s platform funded $10.6 million in small business loans in the month of April §  Launched “Lender Ratings and Reviews” and Small Business Loan Calculators on

its platform §  Funded $128 million in total financing with over 5,100 SMBs in 2015

2016 §  Partners with the Small Business & Entrepreneurship Council, "a leading advocacy

and education organization dedicated to promoting entrepreneurship and strong small business growth," to support the funding needs of more than 100,000 small businesses

§  Released survey covering borrower understanding of the costs associated with a loan. Easiest to understand: "total payback amount". More difficult: APR and factor rate

§  First Quarter 2016 results: Facilitated $52.5 million in financing through its marketplace now composed of 70+ small business lenders - a 200% increase from first-quarter 2015. 1,000+ new businesses funded. Average loan amount: $30,000. Average days to fund: 4. "Of the $52.5 million funded, a record $6.2 million came through Lendio’s partnership with Staples”

§  AmEx announces the company will launch small business loans on the Lendio platform

FundingRound


SeriesA February2011 $6million/Highway12Ventures,GSAVenturePartners

SeriesB August2013 $4.5million/RunaCapital,Highway12Ventures,TribecaVenturePartners

SeriesC March2015 $20.5million/NapierParkGlobalCapital,BlumbergCapital,Highway12Ventures,NorthHillVentures,PivotInvestmentPartners,RunaCapital,TribecaVenturePartners

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Purchase Financing

HEADQUARTERS: New York, NY FOUNDER: Jeffrey Rogers (President & CEO) LOAN ORIGINATION: Purchase financing SMALL BUSINESS LOANS: $10,000 - $1 million, between 3-36 months. Interest rates starting at 8%. Interest rates: 0.67% - 3% per month. OPERATES: U.S., UK and Canada Operates a marketplace loan platform that provides loans to small businesses and high yield debt products to institutional investors. At present, LiftForward only works with institutional investors. Partnerships with suppliers, retailers and manufacturers providing loans and purchase financing to their small business customers. Beyond small business loans, offers co-branded products and white-labeled lending platform. LiftForward is a licensed lender Over $260 million in raised to fund loans and create jobs.

TIMELINE 2013

§  Founded and launched 2014

§  $2 million debt financing §  Member of British American Business based in NYC

2015 §  $7 million debt financing §  Secured credit facilities totaling up to $250 million from Varadero Capital. Debuts

TaaSLift – Technology-As-A-Service Marketplace Loan Platform allowing businesses to offer lending products to businesses

§  Microsoft launches its first TaaSLift program providing members with software and support

2016 §  GLI Finance announces Andy Whelan as CEO. Whelan will also sit on the board of

LiftForward. “We have identified certain platforms that have strong management coupled with scalable electronic platforms such as Finexkap, The Credit Junction, LiftForward and Funding Options, which we believe have the ability to grow significantly"


SeriesA August2014 $2.3million/GLIFinance

Creditfacility July2015 $250million/VaraderoCapital

SeriesB February2016 $4million/IACapitalGroup,SyncoraHoldings.

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E-Commerce Credit

HEADQUARTERS: Seattle, WA GENERAL MANAGER OF AMAZON LENDING: Nick Talwar GENERAL MANAGER OF AMAZON MARKETPLACE: Peter Faricy LOAN ORIGINATION: Amazon Capital Services, Inc. LOANS: $1,000 - $600,000 for 3-6 month terms. Interest rates between 6-14%. Amazon makes money on the interest and takes cut of all sales on its marketplace. Funds provided to the seller's Amazon Seller Account within five days. Monthly payments are deducted from the account Invitation-only program - Amazon selects sellers on its platform based on online sales history.

TIMELINE 2012

§  Founded (US and Japan) §  Reports surface from Amazon sellers that they have begun to receive notifications

about Amazon Lending 2014

§  Amazon hires former head of Visa North America Nick Talwar to expand Amazon Lending. Talwar previously worked at peer-to-peer lending service Prosper and Citibank’s consumer banking business in Sweden

2015 §  Announced that it intends to launch in 8 more countries by the end of the year:

Canada, China, France, Germany, India, Italy, Spain and the United Kingdom 2016

§  According to the 2015 Shareholder Letter: “We also created the Amazon Lending program to help sellers grow. Since the program launched, we’ve provided aggregate funding of over $1.5 billion to micro, small and medium businesses across the U.S., U.K. and Japan through short-term loans, with a total outstanding loan balance of about $400 million.” In addition, Amazon Founder and CEO Jeff Bezos said the company hopes to expand Amazon Lending and is “now working on ways to partner with banks so they can use their expertise to take and manage the bulk of the credit risk”

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HEADQUARTERS: San Jose, CA Darrell Esch, VP and GM of Business Financing Solutions; CURRENT CEO: Dan Schulman LOAN ORIGINATION (U.S.): WebBank LOANS: Offered exclusively to PayPal business customers. Loan determined by PayPal sales. Most cases: Up to 18% of sales the business processed through PayPal in the past year, up to $97,000. Repayments are a fixed percentage of the company’s daily sales (30% max). Single fixed fee (based on sales history, loan amount and daily repayment deduction percentage the business selects). No periodic interest and no late fees. Minimum payment (loan + fixed fee) required every 90 days (at least 10% of loan amount). No credit check, verification instead through PayPal sales history “Because automated repayment occurs the day AFTER your corresponding sales, you should maintain a PayPal balance greater than the share of sales you owe as repayment each day.” AIM: Allow businesses to buy inventory to sell more products via PayPal AVAILABLE IN: U.S., UK and Australia “To apply for PayPal Working Capital, your business must have a PayPal business or premier account for at least 3 months and process between $20,000 and $10 million within those 3 months or within any time period less than or equal to 12 months.” PayPal Working Capital Risk Model (“PRM”): A credit quality indicator to help predict the merchant's ability to repay the principal balance and fixed fee related to the working capital advance. “Primary drivers of the model include the merchant's annual payment volume and payment processing history with PayPal, prior repayment history with the PayPal Working Capital product, and other measures. Merchants are assigned a PRM credit score within the range of 350 to 750. We generally consider scores above 610 to be very good and to pose less credit risk.” According to PayPal’s 10-Q: “At March 31, 2016 and December 31, 2015, the weighted average PRM score related to our PayPal Working Capital balances outstanding was 638 and 630, respectively.”

TIMELINE 2013

§  Launched as add-on for PayPal merchants (not just eBay) 2014

§  Launched in the UK and Australia 2015

§  PayPal splits from eBay §  Increased borrowing limits from $65,000 to $85,000. Borrower can take on up to

15% of sales from 8% originally §  PayPal Working Capital tops $1 billion in loans - $3 million in loans per day. More

than 60,000 merchants worldwide have borrowed (15% of borrowers located outside the US)

2016 §  10-K: “The total PayPal Working Capital advances and fees receivable (“Merchant

Receivables”) outstanding as of December 31, 2015 and 2014 was $421 million and $103 million, respectively, reflecting a year over year increase of 309%”

§  10-Q: “Total PayPal Working Capital advances and fees receivable ("Merchant Receivables") outstanding as of March 31, 2016 and March 31, 2015 was $488 million and $145 million, respectively, reflecting a year over year increase of 237%. The increase in merchant receivables was due to increased originations of our PayPal Working Capital product”

HEADQUARTERS: San Francisco, CA FOUNDER: Jack Dorsey (CEO) HEAD OF SQUARE CAPITAL: Jacqueline Reses LOAN ORIGINATION (US): Balance sheet as well as Celtic Bank, a Utah-Chartered Industrial Bank. Reses: ““We want to show investors we’re willing to put skin in the game. But we’re quite focused on managing risk overall as a company.” (WSJ – March 2016) “Square will offer the loans to small businesses that use its payment devices, with fees of around 10% to 16% of the amount borrowed. The loans will be paid back by Square taking a cut of each transaction, typically around 10%. Unlike a cash advance, which is open-ended, the loans must be repaid within 18 months and can be repaid early.” (WSJ – March 2016) On the expansion of Square Capital, “We believe that our existing cash and cash equivalents and availability under our line of credit will be sufficient to meet our working capital needs and planned capital expenditures for at least the next 12 months.” – 10-Q 2016 Square Capital has extended more than $100 million to over 20,000 independent businesses since its launch last year.

TIMELINE 2009

§  Square founded 2014

§  Introduced Square Capital §  Announces deal with Victory Park Capital (for unknown $$$) to expand Square

Capital. With additional capital the company will “extend hundreds of millions of dollars to tens of thousands of additional sellers who need capital to grow.” At the time of the announcement, Square had already advanced $50 million to more than 10,000 small businesses

§  Square processed more than $30 billion in payments this year 2015

§  As of March, the company has extended $100 million in capital to more than 20,000 merchants

§  As of August, Square Capital became Square’s fastest growing unit (besides payments)

§  Hires Jacqueline Reses to run Square Capital. Former Chief Development Officer at Yahoo and Vice President at Goldman Sachs working on M&A

§  As of August: the company was extending $1 million per day to small businesses §  In 2015, 70,000 cash advances totaling $400 million

2016 §  Square acquires team behind predictive analytics service, Framed Data, and will

deploy them to its Square Capital team §  In March, the company switched from providing merchant cash advances to

business loans through a partnership with Celtic Bank §  In April, Square advanced nearly $25 million in capital §  10-Q: “We are also focused on evolving each of our services to best serve our

sellers, as evidenced by Square Capital's recent expansion from offering merchant cash advances (MCAs) to offering merchant loans, which offer increased flexibility for sellers, and position the service for continued scalable growth”

§  Announced that Victory Park Capital will triple its original investment in Square Capital, with new money from investors including Colchis Capital

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Lending via Your Social Network, the Crowd

HEADQUARTERS: Austin, TX CO-FOUNDERS: Will Davis, Evan Baehr Social small business collaborative LOAN ORIGINATION: $25,000 to $1,000,000. Startup: $1,000 - $1,000,000 from interest rates of 1%. Growth/Established: $25,000 - $1,000,000 from interest rates of 8%. Terms of 1-5 years Calls itself the lowest-cost online lender. Small business funding through the support of a borrower's network (called Backers) and Able. Family and friends Backers contribute 10-50% of total loan, while Able covers the rest. Able determines the rate paid on their funded portion of the loan. BACKERS: Need valid US bank account, among other requirements. Minimum of three backers on up to a maximum of five backers. Backers must commit to funding at least $1,000 of the loan. No single backer can fund more than 50% of committed capital. Can charge the same interest rate as Able or lend at rates half that of Able. Backers take first loss if borrower defaults ABLE’S NETWORK: 100+ entrepreneurs. Borrowers and Backers become part of the Able Network. Consultative services, feedback provided.

TIMELINE 2014

§  Founders shutdown startup Outbox that digitized U.S. postal mail. Founders relaunch new product: Able

§  Able beta launches in Texas 2015

§  Launched nationwide. As of August: Available in 40 states and Washington, D.C. §  Launched Ask Able – conduct pro-bono one-on-one consultations with small

businesses §  Launched Able Start (beta) allowing “credible entrepreneurs with viable business

plans to use the Able platform to raise 100% of their funds through custom loan agreements with their friends, family and fans. Founders keep all of their equity and set their own terms and interest rates”

2016 §  Launches True Rate Calculator and Able Refi at LendIt 2016

§  The True Rate Calculator allows small business owners to uncover the actual APR of their existing business debts

§  Able Refi allows small business owners to refinance high-interest loans and credit cards to save $5,000 a month on average

§  Able raises their maximum loan amount to $1,000,000

FundingRound


SeriesA August2015 $6million/BlumbergCapital,RPMVentures,PetersonPartners,ExpansionVenturesAngelListSyndicate 84

HEADQUARTERS: La Jolla, CA CO-FOUNDERS: Ethan Senturia (CEO), Russell McLoughlin (CTO) Debt-based crowdfunding platform LOANS: Term loans and lines of credit from $25,000 - $500,000. Interest rates from 9.99%. Terms: 48 months. Requirements: 1+ years in business, 600+ personal credit score, $150,000 in annual revenue. Dealmaker Application - Two years worth of tax returns, bank account information, FICO score to understand a borrowers unique financial needs. Refers to itself as: “First crowdlending platform to offer multiple products to SMBs, and the first to allow investors the freedom to choose specific investments.”

TIMELINE 2013

§  Founded §  Launched crowdfunding platform connecting small business owners with accredited

investors and institutional investors 2014

§  Raises $1.2 million seed round with Southern California based angels completing the round

§  Announced asset based line of credit product §  National Small Business Association appoints the firm as exclusive lending partner §  Expands to 40 states from 20 §  Partnership with Direct Lending Investments allowing the firm to invest in qualified

small businesses via multiple Dealstruck products §  Announces API product for institutional investors, enhanced portal for accredited

investors §  Hispanic Chamber of E-Commerce Establishes Strategic Alliance with Dealstruck §  Surpasses 100th small business loan

2015 §  Launches inventory line of credit §  Partners with LendingTree Surpasses $100 million in loans through 750 loans §  $10 million capital investment from Community Investment Management LLC §  Released a joint e-book with Lendio titled, “Small Business Lending in the Digital

Age” focused on the online small business lending industry 2016

§  Expands its invoice financing line of credit product from $250,000 to now $500,000 §  Released a survey covering the political issues affecting small businesses §  Released a survey on the use of tax refunds by small businesses

FundingRound


SeriesA April2015 $8.3million/TrinityVentures

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HEADQUARTERS: Boulder, CO Business inventory crowdfunding CO-FOUNDERS: Sean De Clercq (CEO), Andrew Westwick (CTO) FOCUS: Small and mid-size businesses Crowdfunding platform allowing non-accredited users to browse companies, buy a portion of the company’s purchase order (in exchange for a consigned rate), promote them (if they wish) to help sell their inventory, earn return if company’s goods sell. Once funding goal met, Kickfurther buys the inventory, gives it to the business who then sells it and returns a certain percentage to its backers every month depending on how much inventory sold. Originally named Ouiby, but changed name to KickFurther due to the difficulty of pronouncing it PROTECTION FOR BACKERS: Scrutinization of each offer (social scoring algorithm that looks at social media, e-commerce websites, crowdfunding websites, sales history, proof of production, client and professional references), reputational risk, and each offer is limited to $100,000 initially. Backers can also vote if a company doesn’t meet its promised monthly return on whether to liquidate assets, sell assets at a lower cost or through alternative marketing channel. Kickfurther takes a withdrawal fee (1.5%) from users that withdraw funds from platform. However, no fee to reinvest. Profits earned are considered short-term capital gains. Since the website is not dealing with the sale of securities, it does not run afoul of the JOBS Act. BUSINESS OFFERS FUNDED: 266. Average annualized profit for buyers: 30%. Amount of payments: $2.47 million

TIMELINE 2014

§  Graduated from Boulder’s newest accelerator, Boomtown §  First transaction arranged on the platform

2015 §  Launched a number of new and improved features on the platform §  Released user profile survey §  As of December 1, $2.2 million of loan inventory has been funded on the Kickfurther

platform 2016

§  Series A expected sometime this year §  Surpasses $5 million in deal flow, with backers funding 230 offers by more than 187

companies, "earning an average greater than 2% consignment profit per month on offers that have been completed“

§  Kickfurther announces the deployment of "Kickfurther Keys" providing backers with early access to fund offers before they go live

§  Kickfurther teamed up with NSR Invest, "a leading peer-to-peer investment management platform," to utilize NSR Invest's open architecture to provide Kickfurther clients with "the ability to analyze and choose company offers using NSR's best-in-class analytics, trading and reporting tools."

§  Charles River Ventures Partner Bill Tai joins Kickfurther's board of advisors

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HEADQUARTERS: Denver, CO Crowdfunding receivables start-up for commercial lines of credit FOUNDER: Krista Morgan (CEO) Morgan is also the co-host of Women Who Startup Radio Working capital financing up to $5 million. Borrowers annual average APR for borrowers is about 15-25%. Investors annual APRs ranging from 7% to 14%, 60-day liquidity and easier reporting. (AltFi – October 2015). According to Morgan, interest rates average between 15-18% (BusinessDen – March 2016). Calls itself the “first marketplace lender to supply multi-million-dollar working capital lines of credit to growing businesses in the U.S.” Ex-Factor - revolving line of credit secured by receivables, inventory, monthly recurring revenue. “Our borrowers typically use about 65% of their line and their draws go up and down all the time.” A daily, non-compounding fee on your outstanding balance. Only pay for what you use. Investors limited to those who are accredited and with whom P2BInvestor has an existing relationship with and who have been invited to participate. Borrowers limited to those that are B2B (or mostly B2B), generate at least $500,000 in annual revenue and have been in business at least one year. P2Bi has 100 accredited investors and 50 active borrowers (BusinessDen – March 2016)

TIMELINE 2012

§  Founded with $200,000 seed investment 2014

§  Launched and signs first client 2015

§  Announced more than $110 million in funding provided to its borrowers since the platform’s launch

§  Launches Ex-Factor: “a revolving line of credit collateralized by accounts receivable, monthly recurring revenue (designed for the company's Software-as-a-Service customers) or inventory”

§  “Lending Hub” launched to existing clients – online borrower platform accessible on mobile and web and in any browser. “A crowd of accredited and institutional investors participates in funding each credit line, and investors earn a return on the platform in exchange for supporting P2Bi's borrowers”

§  Announces first institutional partnership with HCG Fund Management 2016

§  Receives the first $5 million of $50 million in debt financing, allowing P2Bi to lend up to $100 million

§  Announced institutional investment relationship with MW Eaglewood Americas LLC, an SEC-registered investment adviser. According to P2Bi cofounder and CEO Krista Morgan, the partnership "greatly increases the liquidity of our marketplace and enhances our ability to lend to new high-growth borrowers"

FundingRound


SeriesA September2013 $1.2million/JohnSpiers,RockiesVentureClubinvestorsandnumerousotherinvestors

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Invoice Financing

HEADQUARTERS: Palo Alto, CA Business inventory crowdfunding CO-FOUNDERS: Eyal Lifshitz (CEO), Nir Klar (CTO) LOAN ORIGINATION: Balance sheet lender (line of credit, invoice factoring) BlueVine works with B2B companies with invoice terms of 15 to 90 days and funds invoices with a face value of $500 or more. Credit lines typically start between $5,000 and can go up $250,000.

§  Business line of credit: $5,000 - $30,000. Interest rates as low as 6.9%. Fixed payments over 6 months. BlueVine Flex Credit is a revolving credit product. Requirements: In business for 6 months, business owner has a personal credit score of 600+, revenues of at least $5,000 per month. ACH transfers are free, but a $15 fee is assessed for each bank wire. Not offered in the following states: AK, KY, MD, NE, NV, ND, SD, VT, Washington, D.C.

§  Invoice factoring: $5,000 - $250,000. Receivables due in up to 90 days. Requirements include a borrower personal credit score of 530+. In business at least 3 months with monthly revenues of at least $10,000. ACH transfers are free, but a $15 fee is assessed for each bank wire. Flat 85% - 90% advance rates. If customer doesn’t pay, the borrower “is still responsible for settling its balance with BlueVine.

TIMELINE 2013

§  Founded 2014

§  Beta-launch §  Joined a number of startup/legacy firms in supporting the White House SupplierPay

Initiative 2015

§  In September, the firm launched its manual invoicing feature from beta §  Released study in December that found that 83 percent of SMB owners have

bootstrapped their companies and built them using their own personal finances §  Only 15 percent of SMB owners have used a loan to fill cash flow gaps

2016 §  BlueVine saw a 12x increase in funded invoices in 2015 §  Announced Flex Credit for Small Businesses and adds Google Capital’s Ana Sirbu

as Vice President of Finance and Strategy. “Flex Credit marks the expansion of BlueVine’s cloud-based working capital financing platform beyond invoice factoring.” According to the release, “Flex Credit offers companies a business line of credit between $5,000 and $30,000 with simple, transparent fees and pricing.”

§  Citi Ventures makes a strategic investment in BlueVine


SeriesA March&August2014

$5.5million/LightspeedVenturePartners,GreylockIL,Correla?onVentures,KreosCapitalandKimaVentures,alongwithseveralotherangelinvestors.

SeriesB January2015 $18.5million/83North,formerlyGreylockIL,andLightspeedVenturePartners,withSiliconValleyBank,Correla?onVenturesandotherprivateinvestors.

SeriesC January2016 $40million/MenloVentures,RakutenFinTechFundandothers. 89

CATEGORY: Marketplace based dynamic discounting HEADQUARTERS: Fairway, KS

§  Additional offices in London, Hong Kong, San Francisco, Seattle, Frankfurt and Singapore

FOUNDER: Alexander “Sandy” Kemper (Chairman and CEO) C2FO stands for collaborative cash flow optimization. C2FO is the first working capital market in the world. Buyers and sellers collaborate on early cash flow by negotiating early invoice payment at rates that are profitable for both parties. Companies across the globe use C2FO to increase their operating income while simultaneously producing vital working capital flows to their supply chains. C2FO is a leader in the retail, industrial, manufacturing, energy, healthcare, technology, telecom and transportation sectors. SAMPLE COMPANIES USING C2FO: Costco Wholesale, Mothercare, Nordstrom, Pfizer, TechData, ToysRUs, Union Pacific and Walgreens

TIMELINE 2008

§  Founded 2010

§  First C2FO market transaction §  $2.6 million venture capital investment lead by Summerhill Venture Partners

2011 §  First Fortune 50 customer (Costco Wholesale)

2012 §  Formed partnership with Fifth Third Bank §  $9 million venture capital investment lead by Union Square Ventures

2013 §  Participated in the Capital Access Innovation Summit co-hosted by the SBA and U.S.

Treasury Dept. §  Participated in an invoice financing roundtable with Lord Young, the British Prime

Minister’s Small Business Adviser and officials from the UK’s Department of Business, Innovation & Skills

§  Reports first $1 billion quarter in working capital flows. $18 million venture capital investment lead by Mithril

2014 §  Reports first $1 billion month in working capital flows §  Held Working Capital Summit in Florida with Whole Foods and Karen Mills as

keynotes §  Opens London office to serve EMEA market §  $27 million venture capital investment lead by Tiger Global

2015 §  Publishes Working Capital Outlook Survey findings §  Reports first $1 billion week in working capital flows §  $40 million venture capital investment lead by Temasek

2016

§  Adds Citi Ventures to its list of investors to support the company’s global operations §  Named Erin Carney, formerly with Fountain Capital Management, as Chief

Investment Officer, and Kerri Thurston, formerly with Garmin International Inc., as Senior Vice President of Finance

§  Since May 2010, C2FO has generated more than $48 billion in working capital flows volume and over 198 million days of accelerated payment

90

HEADQUARTERS: Scottsdale, AZ FOUNDER: James Nielsen (CEO) “CreditSuppliers provides construction material financing to help contractors and subcontractors grow their business while merchants, vendors, and material suppliers get paid in a timely manner.” Revolving line of credit ranging from $15,000 - $5 million. Pay for supplies in 10 days or less. Term: repayment up to 150 days. Fees: Transaction fee of 3.5% charged to each invoice. Outstanding balances carry a monthly interest rate of 1% (1-90 days), and 1.5% (91-150 days). Requirements: Three supplier references and other requirements. No FICO required. “We don't base your Master Credit Limit on your personal FICO. You are treated based on the relationships you have with the business community.” Limited to participating suppliers CreditSuppliers, LLC, is a wholly owned subsidiary of Atlas44, LLC.

TIMELINE 2014

§  Atlas44, LLC, the parent company of CreditSuppliers, received an initial $12.5 million capital commitment for CreditSuppliers' proprietary lending platform from G8 Capital

§  Official product launch 2015

§  Crowdnetic launched its Marketplace Lending Gateway which includes: Avant, CreditSuppliers, Funding Circle, Kabbage, Lending Club, Marlette Funding, OnDeck and Payoff

2016 §  Atlas44, the parent company of CreditSuppliers, announces a $10 million dollar

equity infusion by RJT Credit

91

HEADQUARTERS: Los Angeles, CA FOUNDER: Jed Simon (CEO) FOCUS: Small and mid-size businesses in the digital media sphere Once invoices are verified: “FastPay advances a percentage of the funds up front and rebates the remaining amount once your client pays.” PROPRIETARY TECHNOLOGY PLATFORM: IGNITE Lines of credit from $5,000 to $20 million within two days. BY THE NUMBERS:

§  Equity Raised: $19M ($15M from Oak HC/FT) §  Debt Capital Partners: Wells Fargo & SF Capital §  Funds originated: $1 billion §  Invoices Financed: 30,000+ §  Loss Rate (on net): 6bps §  Liquidity: Receivables turn 5x/yr (avg. DSO 69 days)

FastPay Labs – “intense data analysis, to industry research to portfolio case studies and even some party planning, it ALL goes down in the Lab.”

TIMELINE 2009

§  Founded with focus originally on providing financing for digital publishers 2010

§  Launched 2012

§  Secured $25 million in commercial financing from Wells Fargo, SF Capital Group 2013

§  Raised $10 million credit facility for the development of new products and initiatives §  Company has provided more than $100 million in working capital to more than 100

publishers, ad-tech companies, and other digital media businesses. Yet to have a single default

2014 §  FastPay NYC launches §  Released a report on the average length of payment terms in the digital advertising

industry §  Raises $15 million in equity funding from Oak HC/FT. Oak’s first FinTech investment

from its recently launched $500 million growth-equity fund §  Has originated more than $500 million in loans to digital media companies

2015 §  Partnership with leading advertising software platform, Mediaocean, providing

vendors with FastPay solutions to manage receivables 2016

§  Surpassed $1 billion in cumulative loan volume

92

HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Eyal Shinar (CEO), Yuval Ariav, Tomer Michaeli LOAN ORIGINATION: Balance sheet lender Unlike factoring companies, Fundbox provides companies with 100% of the invoice value. “We never come between you and your customers, as factoring companies do.” ADVANCE: $100 - $15,000. No interest charged, though small fee each week that an outstanding balance remains (equal to approximately 0.5% of the invoice value). Terms: Advances are automatically paid back over 12 weeks. “Fundbox will automatically debit 1/12th of the invoice plus the fee every week for 12 weeks.” An invoice clearing fee is "determined based on your business' health and specific invoice properties." In order to use Fundbox, a small business owner or bookkeeper simply connects with one-click to their accounting and bookkeeping apps, including Quickbooks, Xero, or Freshbooks, on Fundbox.com

TIMELINE 2012

§  Founded 2013

§  Originally based in New York according to first blog post 2014

§  Partnerships with FreshBooks, Harvest, where its users can obtain short-term financing from Fundbox based on outstanding invoices

§  Participated in a one-day event with the U.S. Small Business Administration called "Access to Capital: Money to Mainstreet" in NYC

2015 §  September: Underwrites 15 millionth invoice along with $50 million in equity funding

raised §  Partners with Intuit which launched a new product giving small business owners

ability to advance payments for outstanding invoices within QuickBooks §  Released data showing that 64% of small businesses wait beyond net terms for

payments

FundingRound


SeriesA April2014 $17.5million/KhoslaVentures,FormerCi?groupchiefexecu?veVikramPandit,RonConway’sSVAngel,formerThomsonReuterschiefexecu?veTomGlocer,andothers.

SeriesB March2015 $40million/GeneralCatalystPartners,KhoslaVentures,ShlomoKramer,BlumbergCapital,NyCaInvestmentPartners

Venture September2015 $50million/BezosExpedi?ons,SoundVentures,EntréeCapital,KhoslaVentures,GeneralCatalyst,BlumbergCapital,ShlomoKramer.

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HEADQUARTERS: San Francisco, CA CO-FOUNDERS: Former CEO Bertram Meyer, CPO Markus Ament, CTO Philip Stehlik, and General Manager of Germany Martin Quensel. CURRENT CEO: Cedric Bru ADDITIONAL OFFICES: Austin, Texas; Park City, Utah; London, England; Düsseldorf, Germany; and Sofia, Bulgaria “Taulia Dynamic Discounting allows for a discount at any time. With Taulia, suppliers can choose to be paid on any date once the invoice is approved, with correlating discounts (the earlier the payment, the greater the discount).” The Taulia platform has processed over $150 billion in transactions for 700,000 suppliers. Contracts with Coca Cola, John Deere, RBS, for use of its Dynamic Payment Platform to automate invoice processing, reduce supply chain costs. “In exchange for getting paid early, suppliers give up a small percentage of their total invoice amount to the buyer and Taulia.” APR dependent on the credit quality of the buyer though can range from 1.5% - 12%. "Taulia calculates everything for them. We display the effective rate and also the amount.“ (Nerdwallet – April 2015)

TIMELINE 2009

§  Founded 2011

§  Expands to the UK 2012

§  SAP endorses Taulia to be one of their most strategic partners 2013

§  Provides eInvoicing and Supplier Self-Services to the real estate, oil and gas markets

§  Introduced the Million Dollar Guarantee program where customers will realize $1 million in savings from dynamic discounting within first year of implementation. Companies must have over $3 billion in annual invoice spend

2014 §  Launch Taulia Enhanced Discounting allowing “buying organizations to offer their

suppliers early payments in exchange for a discount using either their own cash or 3rd party funds”

§  Supporter of Obama Administration initiative, SupplierPay. Taulia announces Early Payment Quick Start Initiative – “a comprehensive program designed to incentivize corporations to implement a solution that enables early payments to suppliers”

§  Launches analytics platform, Taulia Analytics, which aggregates and analyses millions of supplier transactions with the ability to compare payment terms against benchmarks across industry, region, country... etc.

2015 §  Released report covering the payment process between corporations and their

suppliers. Finds that 47% of suppliers paid after agreed-upon payment date §  Partnership with KPMG to focus on supply chain finance activities §  Cedric Bru named CEO. Taulia looking to IPO in 2016 at $1 billion valuation

2016 §  Posted 219 percent new bookings growth compared to the same period last year.

"New customers signed during the fourth quarter will bring 50,000 suppliers in 71 countries to the Taulia platform, and an additional $65 billion in spend.“

§  Announced partnerships with BuyerQuest, a lending e-procurement supplier, and Hanse Orga, a global provider of SAP-integrated finance solutions


SeriesA December2010 $3.2million/MatrixPartners,TrinityVentures,AngelsForumandothers.

SeriesB July2011 $8.5million/MatrixPartners,TrinityVentures,DAGVentures

SeriesC August2013 $18million/Lakestar,MatrixPartners,TrinityVentures,TELUSVenturesandDAGVentures

SeriesD July/September2014,January2015

$55million($27million,$13million,$15million,respec?vely)/Trinity,Matrix,LakestarandDAGVentures,BBVAVentures,EDBI,ZoukCapital.

SeriesE January2016 $46million/ZoukCapital,includingallexis?ngins?tu?onalinvestors,andothers.

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Merchant Cash Advance

HEADQUARTERS: New York, NY CO-FOUNDERS: Benjy Feinberg (CEO), Shai Feinberg, and Jeremy Esekow Extend up to $50,000 in credit allowing small businesses to pay their vendors. Repayment plan up to 180 days. “Your rate is based on our credit check and will be within $11 to $30 per month, for every $1,000 borrowed.” Only charged for what you use. "Behalf now works with select vendors to enable you to get up Net 15, 30 or 45 day terms, interest free.” Does not work to pay existing debt, including credit card bills, bank loans, payroll, rent, oneself. Report to credit bureaus including D&B, Experian and Equifax. Do not report to personal credit bureaus. Israeli company formerly known as Zazma It works with suppliers of products to small businesses. Behalf pays the vendors immediately. Small-business clients receive the inventory they need from the vendor and pay Behalf.

TIMELINE 2011

§  Founded 2014

§  Changes name from Zazma to Behalf 2015

§  Attended Treasury online lending meeting in Washington, D.C. §  Opens up headquarters in NYC §  Announce collaboration with Mastercard and Comdata. “The initiative helps improve

cash flow for SMBs by providing alternative payment terms for their payments to merchants that accept MasterCard and are approved for participation by Behalf. The offering extends Behalf’s product benefit by adding the ability to use a unique, secure virtual card for both point of sale and online purchases while receiving convenient payment terms”

FundingRound


SeriesA September2013 $10million/SequoiaCapital,SparkCapital

SeriesB July2015 $119million/MissionOG,MaverickVenturesIsrael,SequoiaCapital,SparkCapital,VictoryParkCapital

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HEADQUARTERS: New York, NY CURRENT CEO: Daniel DeMeo ORIGINATION: WebBank (small business term loans and flexible payment TrakLoan), CAN Capital Merchant Services, Inc., (Merchant Cash Advances), CAN Capital Asset Servicing, Inc. (longer term, 2-4 year, installment loans) SMALL BUSINESS TERM LOAN: $2,500 - $150,000 (single business), up to $250,000 (multiple locations). Terms: 4 - 24 months. Requirements: gross revenue of $4,500+, in operation for greater than 4 months. MERCHANT CASH ADVANCE: $5,000 - $150,000 Purchase Price paid to merchant. Collection of purchased receivables based on fixed percentage of daily payment card sales. INSTALLMENT LOAN: Loans from $50K - $100K. 2, 3 or 4 year terms. Monthly repayment schedule. TRAKLOAN: Flexible payment loans (based on fixed percentage of payment card sales) from $2,500 to $150,000. Focused on providing capital access to underserved Main Street businesses. Since launch in 1998, provided access to over $6 billion in capital to small businesses. Daily Remittance Platform - evaluates business-specific data from a wide variety of banking, credit card processing and other sources. Platform for collecting daily loan payments or remittances of purchased receivables and using that data, and other information, to service and underwrite customers. CAN Capital Small Business Health Index - Focus on small and mid-sized business climate and financial product options. Real-time platform and risk scoring models to assess and facilitate the provision of capital to SMBs in the US. Over 175,000 funding transactions since 1998

TIMELINE 1998

§  Launched §  First company to develop and apply a Daily Remittance Platform

2012 §  $30 million funding round led by Accel with participation from QED Investors and

Ribbit Capital 2013

§  Capital Access Network rebrands as CAN Capital §  Integrates online lending engine with PayPal allowing working capital funds to be

deposited into merchant PayPal accounts §  Surpassed $3 billion in capital provided to small businesses since inception §  Debuts CAN Mobile Funder tool for small businesses generating faster closing times

through the use of mobile technology 2014

§  Reaches $4 billion funding milestone §  Raised $33 million in funding led by Meritech Capital Partners with increased

participation and ownership from existing investor Accel Partners. Meritech and Accel were joined in the funding round by Ribbit Capital and QED Investors

§  Launch CAN Connect “a full suite of Application Program Interfaces (APIs) that enables third-party providers, such as payment processors and providers of point of sale (POS) systems and cloud accounting software, to offer their small business customers access to working capital based on available merchant data.”

§  Closed its first securitization totaling $200 million and rated investment grade by S&P and DBRS

§  Partnered with Yodlee allowing funding via CAN Capital through Yodlee Small Business Solution

2015 §  Partnered with Worldpay allowing Worldpay merchants to take advantage of CAN

Capital’s finance programs. Also partnered with iPayment providing 150,000 small businesses working with iPayment the ability to obtain flexible financial solutions

§  Secures $650 million senior credit facility led by Wells Fargo §  Provided access to more than $5 billion in capital to small businesses

2016 §  Surpassed $6 billion in capital provided to small businesses since inception §  Launched the Innovative Lending Platform Association with Kabbage and OnDeck

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HEADQUARTERS: New York, NY FOUNDER: David Goldin (CEO) CAPIFY: Customer centric, Accountable, Product, Integrity, Focused, Yearn LOAN ORIGINATION: Merchant Cash Advance: Merchants Advance LLC (across 49 states, in CA: Apex Advance LLC). Small biz loans: Main Street Business Loans, LLC; Bank of Lake Mills, Wisconsin through AmeriMerchant West, LLC. BUSINESS LOANS: $5,000 - $1,000,000. Cash advances and loans are based on the strength of the business, not a borrowers credit history “Capify does not offer business credit or loans directly. Capify offers through its affiliates and subsidiaries two products, a Merchant Cash Advance and a Small Business Loan.” Merchant cash advance offered by Merchant Advance LLC across the 50 states, except California where advances are offered by Apex Advance LLC. Small business loans provided by Main Street Business Loans, LLC or Bank of Lake Mills. Eligible for merchant cash advance if a borrower's business processes at least $8,000 a month in credit card sales and the business has been processing credit cards for at least 60 days. Eligible for a small business loan if a borrower has been in business for at least 1 year, has $10,000 a month in gross sales, and has proof of ownership. Operates in the US, UK, Australia and Canada. Founding member of the Small Business Finance Association. SBFA used to be called “North American Merchant Advance Association” before rebranding in April. “Capify API small business funding platform analyses merchant data through our predictive model scoring enabling you to offer your small business customers access to the working capital they need.” Since inception: 24,000+ funded transactions across four countries providing access to over $500 million.

TIMELINE 2002

§  AmeriMerchant founded 2007

§  True North Capital founded 2008

§  United Kapital and AUSvance founded 2015

§  Rebranding: AmeriMerchant, United Kapital, AUSvance and True North Capital all come under the umbrella of Capify – now the most diverse, worldwide alternative small and medium-sized business (SMB) finance platform. Opens up Capify’s SME lending services to about 35 million businesses

§  Partnerships with Alibaba, becoming the fourth platform to partner with the e-commerce giant

§  The Small Business Finance Association hires Stephen Denis as Executive Director. Capify CEO takes the role of President at the Association

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HEADQUARTERS: New York, NY FOUNDER: Andrew Reiser (CEO) LOAN ORIGINATION: balance sheet Merchant cash advance, revenue based factoring, and commercial loans for small businesses. FOCUS: Emerging entrepreneurial businesses across the U.S. who have little access to bank loans or SBA loans. Financing from $10,000 - $1 million. Business financing: Revenue-based financing, small business loans, factoring, equipment finance.

TIMELINE 2006

§  Founded 2011

§  At the time, provided the largest merchant cash advance in the history of the specialty finance industry to develop Tropicana Hotel’s Las Vegas Mob Experience

2013 §  As of 2013, considered itself to be the largest provider of syndicated small business

loan products §  Expands to Australia after joint venture with Australia’s Prospa Advance allowing

Strategic to provide “the technology for the electronic servicing, underwriting and cash management of all Prospa Advance accounts in Australia. Strategic Funding Source is also supporting the growth of small businesses in Australia by jointly funding all merchant cash advances and loans originated by Prospa Advance”

2014 §  Received $35 million from investment firm Pine Brook as part of a $110 million line of

equity arrangement §  Financed roughly $700 million for small businesses since inception

2015 §  Named Stephen Lerch Chief Financial Officer §  Closed a $90 million credit facility with CapitalSource, with participation from East

West Bank and BankUnited

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Nonprofit Micro- and Small Business Finance

NETWORK HEADQUARTERS: New York, NY §  Regional headquarters: NY, Chicago, Albuquerque, San Diego

CURRENT CEO: Gina Harman (Accion U.S. Network) Largest micro- and small business lending network in the U.S. through four Accion member organizations - each an independent CDFI. BUSINESS LOANS: $200 - $1M, depending on qualifications and geography (average loan size is $10,000). Fixed rates from 8% - 22% APR. Terms of 6 - 84 months depending on geography and loan product. No pre-payment penalty. Closing costs and processing fees vary based on loan product and geography. REQUIREMENTS: Businesses with 6+ months track record; credit score of 500+; no bankruptcies, foreclosures or late mortgage payments in the past 12 months; sufficient cash flow on a monthly basis; up-to-date on all bills. Other criteria may apply for other types of loans. Since 1991, the members of the Accion U.S. Network have made more than 57,000 loans to business owners. Globally, Accion is dedicated to building a financially inclusive world with operations spanning 32 countries.

TIMELINE 1961

§  Accion founded 1991

§  Accion begins lending in the U.S. starting in Brooklyn, NY 1994

§  Accion U.S. lending expands to five additional cities 2011

§  The Accion U.S. Network is founded to unite Accion member CDFIs into the largest non-profit micro- and small business lending network in the country

2015 §  Accion’s local office presence has expanded to 11 states and 14 cities. In addition,

Accion’s online loan application and business resources are available to entrepreneurs nationwide

§  Co-author and original signer of the Small Business Borrowers’ Bill of Rights unveiled in Washington, DC

2016 §  The members of the Accion U.S. Network have collectively lent more than $490

million through more than 57,000 loans to U.S. businesses, leading to the creation or sustainment of more than 22,000 jobs. Accion has a repayment rate of 95%

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HEADQUARTERS: San Francisco, CA Personal loans, small business loans CO-FOUNDERS: Matt and Jessica Flannery, Premal Shah (President), CURRENT CEO: Martin Tschop World's first person-to-person micro-lending website 501(c)(3) non-profit organization Investors can make loans for as little as $25 after selecting the right borrower on Kiva’s marketplace. Profiles and stories of each borrower included on the website. Loans dispersed by Kiva field partners (microfinance institutions… etc.) who vet each borrower. 0% interest loans. Borrowers repay to lender’s Kiva account. 100% of every dollar lent goes to funding the loan, Kiva doesn’t take a cut. Lenders can expect repayment in 6-12 months. Kiva, itself, is primarily funded through grants, donations, corporate sponsors, foundations… etc. Kiva Labs – testing and developing new financial products for use by borrowers worldwide. First loans went to individuals in Uganda. Notables on Kiva Board: Wences Casares (Xapo), Amy Klement (Omidyar), John Muller (PayPal), Reid Hoffman (LinkedIn)

TIMELINE 2005

§  Founded 2008

§  Launched §  Partnership with Oliver Wyman and launch of Kiva Externship Program with OW staff

contributing to Kiva’s continued growth and expansion 2009

§  Launches online microfinance pilot program in the U.S. through partnerships with local microfinance institutions ACCION USA and Opportunity Fund

§  Kiva surpasses $100 million in microloans 2010

§  Receives $5 million grant from Omidyar Network. At that time, the largest grant the non-profit had received

§  Receives $1 million from Visa to be used to raise awareness of microlending §  Funding student loans added to its microlending marketplace

2011 §  Helped arrange over $200 million in loans §  Launches Kiva Green Loans with focus on lending to green businesses/individuals §  Launch of pilot program, Kiva Zip in US and abroad. Offering more direct funding to

small business owners 2012

§  750,000 individuals have signed up and made a loan through the Kiva platform 2013

§  Capital One announces it will match up to $500,000 in loans made through Kiva’s platform

§  Kiva surpasses $400 million in microloans, 1 million borrowers reached 2015

§  Intuit partners with Kiva Zip providing underserved small businesses with access to loans through its Quickbooks Financing platform. The Intuit Financial Freedom Foundation will establish a $50,000 loan matching program with Kiva Zip with half of that amount designated for women-owned small businesses

§  Julie Hanna, Kiva Executive Chair of the Board, named Presidential Ambassador for Global Entrepreneurship (PAGE)

§  Launches no-interest microloans in the U.S. nationwide. Was originally a pilot program offered in select US cities

2016 §  International Women's Day: 40,850 lenders lent nearly $4.5 million to women,

funding more than 14,200 women §  Launched Kiva Oakland in partnership with Oakland's Mayor Libby Schaaf §  Kiva teamed up with Progress, Rangle.io, and Google to "help Kiva develop better

mobile applications for connecting lenders and borrowers around the world."

Federal Initiatives

HEADQUARTERS: Washington, DC SBA lending for working capital and other needs. CURRENT SBA HEAD: Maria Contreras-Sweet SBAONE: Online origination platform providing lenders with automated access to SBA’s guarantee. Processes SBA 7(a) and SBAExpress Loans with the goal of handling SBA 7(a) loan from inception to end.

§  SBA One will reduce loan processing times for average SBA loans by 64%, which means some processing times for some SBA products will fall from 100 hours to 24 hours. (American Banker – July 2015)

SBA LINC (Leveraging Information and Networks to access Capital): Online platform matching potential SBA loan candidates with SBA-approved lenders in the 50 states. “More than 300 lenders participate in LINC throughout all 50 states and U.S. territories.” Loans: Up to $5 million. Maxium rates: 4-10% (as of May 2015). Terms: up to 25 years. Business information sent to a pool of prospective SBA lenders operating in the area of the business. Lenders are asked to respond within two days. “LINC is a tool that small businesses can use to identify potential lenders in their communities.”

TIMELINE 2015

§  Launched pilot: Leveraging Information and Networks to Access Capital (LINC) in February. Available only to nonprofit lenders

§  In May, SBA announced the expansion of LINC, now available to all 7(a) lenders nationwide

§  In June, SBA launches “Startup in a Day” Initiative, in conjunction with the National League of Cities, with the goal to enable entrepreneurs “to discover and apply for all city, county, state, and federal licenses and permits needed to start a business in 24 hours or less.” 11 mayors signed the Startup in a Day pledge

§  In July, SBA launched a new credit scoring model combining a business owners personal and business credit scores. The score will be used by credit unions and other lenders in an effort to make loan approvals faster. The score will only be used for those businesses looking to secure a loan of $350,000 or less

§  In August, SBAOne went live for Region III SBA 7(a) lenders, and will expand to other areas of the country later in the year

2016 §  In testimony to the House Small Business Committee in January Contreras Sweet

said LINC has connected 20,000 small businesses with lenders

SBA LINC

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Enter: Incumbent Banks

HEADQUARTERS: New York, NY Personal loans Steven Scherr: CEO of GS Bank, USA Harit Talwawr: head of Goldman’s planned online lending unit LOAN ORIGINATION: Balance sheet lender The firm has been talking about making loans of $15,000 to $20,000 Goldman will make loans directly. It’s also a way for Goldman to expand its banking business without going through the trouble of opening up actual branches. “The traditional means by which financial services are delivered to consumers and small businesses is being fundamentally re-shaped by advances in technology, maturity of digital channels, use of data and analytics, and a focus on customer experience.” – GS memo. GS Bank: Online savings: 1.05% APY (no minimum deposit to open, must maintain a balance of $1 or more); Certificate of Deposit: 1% APY (Term: 1 year), 2% APY (Term: 5 years). “In April 2016, following regulatory approvals, GS Bank USA acquired GE Capital Bank’s online deposit platform and assumed approximately $16 billion of deposits, consisting of approximately $8 billion in online deposit accounts and certificates of deposit, and approximately $8 billion in brokered certificates of deposit.” (GS Form 10-Q) “GS Bank is a New York State-chartered bank and is supervised by the New York State Department of Financial Services, the Federal Reserve Bank of New York and the Consumer Financial Protection Bureau. GS Bank is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation (”FDIC”), which insures deposits up to certain limits.” GS Bank deposits as of March 2016: $87.4 billion (GS Form 10-Q)

TIMELINE 2015

§  Announced that it would enter consumer peer to peer lending space §  Announced new hires: Former Citigroup Inc (C.N) credit card executive David Stark,

who will serve as the business’s chief risk officer. Also joining the team is the former Lending Club Corp (LC.N) operations executive Darin Cline who will lead operations. Other hires include Dustin Cohn, who will head up branding for the new unit. Cohn was the former marketing officer at underwear and sleepwear company Jockey International, and he also helped develop brand campaigns for Gatorade and Pizza Hut at PepsiCo. (PEP.N) Goldman has also hired Boe Hartman, a former executive at Barclays PLC’s (BARC.L) Barclaycard division. In May, the bank announced the hiring of Harit Talwar, the former head of Discover Financial Services’ U.S. cards division, to lead the planned online lending unit that is currently a team of six and is expected to have a team of about 100

2016 §  Mitch Hochberg, a former CFPB attorney, was named as head of compliance for the

online lending unit §  GS Bank launched, with the help of Goldman’s acquisition of a $16 billion book of

deposits from GE Capital. Important to note that Steven Scherr, in an interview with FT, commented that “the new funds could support Mosaic, the bank’s embryonic effort to rival online lenders such as Lending Club and Prosper. That unit, run by a former senior executive at Discover, now numbers about 100 people, and is preparing to start originating loans by the end of the year.”

§  Goldman appoints Steven Scherr as CEO of GS Bank USA. Scherr will also retain his position as Chief Strategy Officer. “He will oversee the online lending platform being developed under the leadership of Harit Talwar, as well as our newly-acquired online deposit platform.” – GS memo

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HEADQUARTERS: San Francisco, CA Small business loans CURRENT CHAIRMAN AND CEO: John Stumpf HEAD OF SMALL BUSINESS: Lisa Stevens LOAN ORIGINATION: Balance sheet lender FastFlex Small Business Loan

§  Created in-house and developed by Wells Fargo Business Direct - "a team that provides small business loans under $100,000 each.“

§  Available to existing Wells Fargo customers who have been with the bank for at least one year.

§  Loans: $10,000 - $35,000. Terms: 1 year. Interest rates from 13.99% to 22.99% (WSJ, May 2015). Required payments made on a weekly basis and automatically deducted from the customer's business-deposit account.

TIMELINE 2014

§  Launches Wells Fargo Works for Small Business with the goal of extending $100 billion in new lending to small businesses by 2018

§  Launched Wells Fargo/Gallup Small Business Index, providing quarterly analysis on the state of small business

2015 §  Wells Fargo begins piloting FastFlex to a prequalified group of Wells Fargo

customers 2016

§  As of March, Wells Fargo provided nearly $41 billion in new loans to small businesses

§  Launched FastFlex Small Business Loan, "an online, fast-decision loan that is funded as soon as the next business day and offers a competitive interest rate to small businesses with short-term credit needs.“

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VII. Common Originating Banks*

*Please note that there are other banks that other online, non-bank finance platforms have partnered with

VIII. Infrastructure Providers/P2P Investment Tools

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IX. Credit Scoring: The Players

110

110

X. Trade Associations/Advocacy Groups Involved

111

111111

*Based on responses to the U.S. Department of the Treasury’s request for information on the online marketplace lending industry and the formation of certain interest groups following the Treasury RFI. Note: Peer2Peer Finance Association is the UK trade association for the peer-to-peer industry.

XI. Regulatory Outlook 2016 and Beyond: Online, Non-Bank Financing Issues Likely to Emerge

• Firms operating online lending businesses on federally-recognized tribal lands or offshore. Concerns expressed in various comment letters about the difficulty of being able to regulate these types of firms.

• At the same time, a handful of lenders urged the department and other regulator authorities to respect tribal sovereignty, and referred to Executive Order 13175, as well as the Tribal Financial Services Regulatory Authority.

Offshore/Tribal Firms

• Question as to whether borrowers have been properly notified about automatic withdrawals and whether they are given the opportunity to opt-out.

Automatic Debiting

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XI. Regulatory Outlook 2016 and Beyond: Online, Non-Bank Financing Issues Likely to Emerge Cont.

• Concern that proprietary algorithms lenders use may inadvertently cause redlining to occur. Redlining

• Whether marketplace lenders need to have “skin-in-the-game” in the origination of loans, and/or the securitization of loans?

Risk-Retention

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• Multiple loans/lines of credit/cash advances to a small business and concerns about debt spiral and potential bankruptcy.

• Soft vs. hard credit checks

Debt Stacking

• Concerns that non-banks are partnering with banks to evade state usury caps. Concerns not only regarding the legality surrounding the model, but of states rights (especially when it comes to setting usury laws).

• Need to also consider whether a non-bank licensing regime makes sense and what it would look like.

Issuing-Bank Model

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• Evolution from peer-to-peer lending to marketplace lending with the influx of institutional investment into the online lending space.

• Do platforms depend too much on institutional investment? Is there the potential for capital flight?

Institutional Risk

• Concerns about the data used in underwriting and whether underwriting models compliant with federal/state regulations.

• More data points and variables, has this improved credit access?

• Investor skepticism and larger than projected losses on some securitizations, how are platforms responding?

Underwriting

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• Do marketplaces contribute to systemic risk, or do they actually enhance financial stability?

Systemic Risk

• Are online lenders sufficiently regulated? • Where are their regulatory shortfalls – consumer and/or small business lending?

• Multiple comment letters to Treasury’s RFI identified small business lending, in particular, as in need of greater regulatory oversight.

Regulation (overall)

u.s. online, non-bank finance landscape

Documents