UPDATE 1-Tiger Global leads $77 million investment in OnDeck
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 deal on Thursday, makes loans online of up to $250,000 to brick-and-mortar businesses like hair salons and doctor's offices.
OnDeck Chief Executive Officer Noah Breslow likened his company to Priceline.com, which helped pioneer the move to online travel services from travel agents.
"What we're trying to do is just like Priceline did to airline tickets," Breslow said.
OnDeck works more quickly and efficiently than traditional banks, he added.
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. The funding is going to the company rather than buying out existing investors.
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 increasing 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.
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