Tiger Global leads $77 million investment in OnDeck
SAN FRANCISCO, March 6
SAN FRANCISCO, March 6 (Reuters) - Tiger Global has made another investment in a venture-backed company, this time, leading a $77 million funding round in small-business lender OnDeck.
New York-based OnDeck, which announced the news Thursday, makes loans online of up to $250,000 to brick-and-mortar businesses like hair salons and doctors' offices.
"What we're trying to do is just like Priceline did to airline tickets," said OnDeck chief executive Noah Breslow, referring to the travel company that helped pioneer the move to online services rather than physical travel agents. He said OnDeck works more quickly and with better rates than traditional banks.
The latest financing round brings OnDeck's funding to $180 million in equity plus more than $300 million in debt financing. Existing backers include First Round Capital, Google Ventures, Institutional Venture Partners, and SAP Ventures.
Other companies that specialize in providing loans to small and medium-sized businesses include Capital Access Network and Kabbage.
Tiger Global, known for its hedge fund and private equity investments, has been deepening its commitment to venture-backed companies, typically at later stages.
Last year, Tiger-led investments in online real estate company Redfin; neighborhood social network Nextdoor; online ticketing service Eventbrite; and Automattic, the company behind the WordPress blogging service. It led a $444 million equity investment in online survey company SurveyMonkey, its biggest move into venture-backed companies.
Tiger and other late-stage investors are seen as enabling the companies they back to delay initial public offerings.
OnDeck said it had no imminent IPO plans.