Connect with us

Hi, what are you looking for?

Jewish Business News

IPOs

Nontraditional Lender OnDeck raises $200 million in IPO

OnDeck

Tech-enabled lender OnDeck Capital Inc. priced its initial public offering at $20 per share Tuesday night, it said, valuing the company at $1.32 billion as it prepared to trade on the New York Stock Exchange on December 17, the New York Business Journal said.

The price exceeded its expected range disclosed last week of $16 to $18. By offering 10 million shares, the nontraditional lender raised $200 million. Shares are expected to trade under the ticker symbol ONDK.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

After a day of trading, shares closed up 38 percent to $27.67, the report said.

OnDeck’s IPO is the New York startup scene’s most prominent exit of the year, culminating seven years of building the company, which struggling through the recession but then soared as credit for small businesses remained tight even as the economy recovered.

Founded by Mitch Jacobs and now led by CEO Noah Breslow, OnDeck creates its own credit rating for small businesses and promises to make lower-level loans banks don’t want to. On Deck makes loans of between $5, 000 and $250, 000 to small businesses with terms of three to 24 months, according to the Journal.

OnDeck’s IPO follows shortly on the heels of the debut last week of Lending Club, a similar non-bank lender that started by making loans to individuals but then expanded into commercial lending, the report said.

OnDeck Capital and Lending Club hope to do to banking what Amazon did to publishing. But they differ in important ways, the San Francisco Business Times said on December 18.

New York City-based OnDeck lends to small businesses, using an in-house data analysis tool that generates an “OnDeck Score” to evaluate the business prospects of the company. Banks usually use little more than the owner’s personal credit rating. OnDeck specializes in short-term, working capital loans. San Francisco-based Lending Club started with personal loans to people consolidating credit card debt, and only recently got into business lending, the Times said.

OnDeck carries most of its loans on its own balance sheet. Lending Club acts a peer-to-peer marketplace, matching up customers with willing lenders and taking a cut. Literally anybody is allowed to lend money through Lending Club, while OnDeck’s capital comes from institutions generally, according to the report.

 

 

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.