Non-conventional loan company Upstart, started as a crowd-backed peer-to-peer loan service but last year shifted to a more conventional loan product, using the company’s individual financial data analysis as a way to help those who wouldn’t qualify for loans from standard loan providers.
Since it launched its Upstart loan service, which takes into account standard financial formulas such as credit score as well as other factors to gauge the likelihood that an applicant defaults on their loan, more than 8,700 loans have been originated.
Today, Upstart announced that it has received $ 35 million in Series C funding to continue the effort to expand the qualification requirements needed to get loans for small businesses, education, or other uses. The new funding comes from a group of backers led by Third Point Ventures and joined by prior investors Khosla Ventures — who led an inside $ 10 million Series B in the fall — First Round Capital, and Collaborative Fund.
What is unique about the funding is that it is not earmarked to go towards funding the Upstart loans but rather to help continue to grow the business…