Credit accessibility is at the heart of CollateralEdge’s latest seed funding round that saw the startup secure $3.5 million.
The Richardson-based fintech startup recently emerged from stealth and provides a way for small and mid-size businesses to strengthen their credit profile. The startup’s proprietary platform creates lending opportunities that allow businesses to borrow capital from regional banks at lower rates.
“The problem we are solving at CollateralEdge is vast, ongoing and has plagued the middle market lending industry for decades,” Joe Beard, CEO and co-founder of CollateralEdge, said in a statement. “The beauty of our solution is that it solves a problem for all stakeholders. The business owner has more efficient access to lower-cost debt, and the community or regional bank has an opportunity to win and retain more long-term business customers. CollateralEdge not only gives banks an opportunity to yield a greater profit, but it also facilitates the bank’s ability to help the businesses in their communities thrive.”
CollateralEdge’s latest funding round was announced on Wednesday, and the amount secured was higher than the company’s original fundraising goal.
“CollateralEdge set out to raise $2 million in their seed funding round, but exceeded that target raising [to] $3.5 million,” Beard told Built In.
The fresh funding will used to expand the startup’s platform to more regional banks and business. This funding will also be used to expand its team, Beard said.
Along with the news of new funding, CollateralEdge also announced several new additions to the company’s advisory board. Co-founder of Serra Real Estate Capital R. David Kelly, managing director of Issac | Milstein James Watkins, vice chairman of Hillwood Management Darcy Anderson and Josh Baer, CEO of Capital factory, will all join CollateralEdge’s advisory board.
The latest round included funding from Perot Jain, a Dallas-based venture capital firm with a focus on tech companies.