On Deck Capital Launches Financing Solution Connecting Millions of Small Businesses...

Thu May 1, 2008 9:01am EDT

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On Deck Capital Launches Financing Solution Connecting Millions of Small
Businesses to Needed Capital
Loan Platform Offers Assistance Amidst National Credit Crunch and Tougher
Lending Environment

NEW YORK, May 1 /PRNewswire/ -- On Deck Capital, the first-of-its kind
financing solution for small businesses, announced today that it is open for
business and lending in 45 states.  The company has developed proprietary
financial products and technology that improves upon standard credit models to
offer performance-based loans to businesses that may not have access to
traditional bank financing.
    On Deck Capital fills the void between bank loans and alternative business
financing products such as merchant cash advances which, similar to payday
loans, charge excessive percentage rates for short term capital.
    On Deck offers business loans up to $100,000 based on the performance of
the business, rather than the personal credit history of the business owner.
Through this innovative model, the company is opening the market to connect
millions of small businesses with revenue under $3 million to institutions
that want to lend to them.
    "Small businesses help our economy thrive and sustain our communities,"
said Mitch Jacobs, founder and chief executive officer, On Deck Capital.
"Unfortunately, even when liquidity was widely available, access to capital
and fair financing has been a challenge for most small business owners,
leaving many in a vulnerable state.  On Deck Capital is fundamentally changing
the lending landscape, enabling millions of enterprises to maintain and grow
their business."
    The launch of On Deck Capital addresses the historical challenges that
small businesses have faced in obtaining fairly priced financing.  This
problem has been exacerbated by the current credit crunch, sub prime mortgage
crisis and overall turbulent market conditions.  Almost sixty-five percent of
the approximately 8 million small businesses that seek capital every year do
not qualify for traditional bank loans.  As a result, many seek financing
through family money or personal credit cards and approximately forty percent
use personal and home equity lines of credit to finance their business.
    "On Deck Capital is one of the best small business solutions I've seen in
years," said James D. Robinson III, former chairman and chief executive
officer, American Express Company.  "Now small business owners across the
country who lack adequate access to traditional banks can obtain fairly priced
capital to build their companies and pursue their dreams."
    Businesses that have been open for at least one year can learn more and
apply online at http://www.ondeckcapital.com or by phone at 888.269.4246.  In
most cases, On Deck offers a decision within two business days and businesses
receive funding within seven days.
    On Deck Capital has been in development for two years and recently closed
$9 million in Series B Financing.  The round was led by RRE Ventures and
included participation from Series A investors Contour Ventures, First Round
Capital, Khosla Ventures and Village Ventures.  On Deck's board of directors
includes experienced investors and financial services executives, including
James D. Robinson III, the former chairman and CEO of American Express Company
and currently a general partner at RRE Ventures.
    The company provides access to financing directly and through several
major distribution partnerships which will be announced in the coming months.
Additional information can be found at http://www.ondeckcapital.com.
    About Us
    On Deck Capital is an innovative financing network for small businesses
that are unable to access traditional bank loans.  On Deck Capital bridges the
vast gap between bank loans and factoring products by providing small
businesses with a viable financing option.  Through the company's network,
millions of small businesses are connected to the capital markets where they
can obtain affordable loans up to $100,000 to meet their daily operating and
long term goals.  The company maintains a proprietary underwriting and loan
processing platform that looks deeper into the health of small businesses,
focusing on the overall business performance, not just the owner's personal
credit history.  On Deck Capital is well-financed by some of the nation's
leading venture capital firms, including Contour Venture Partners, First Round
Capital, Khosla Ventures, RRE Ventures and Village Ventures. For more
information, please visit: http://www.ondeckcapital.com.
SOURCE  On Deck Capital

Jonathan Cutler of Verse Communications, +1-818-981-3023,
jonathan@verseinc.com, for On Deck Capital
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