SAN FRANCISCO, March 6 Tiger Global has made
another investment in a venture-backed company, this time
leading a $77 million funding round in small-business lender
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
Other companies that specialize in providing loans to small
and medium-sized businesses include Capital Access Network and
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.