LenderClose has kicked off a Series B funding round with an investment from Ascentra Credit Union.
Investors in LenderClose’s initial round—Collins Community Credit Union and Serve Credit Union—will double down on their investments into LenderClose made in March 2018.
According to LenderClose CEO Omar Jordan, the 8-figure Series B funding round began as an exclusive opportunity for the company’s initial investors, but expanded in reaction to growing excitement about the technology’s ability to increase speed and efficiency for community lenders.
LenderClose has not confirmed any deal specifics, but according to a public filing with the SEC, has raised $1 million so far this round. The Form D was filed Feb. 18, 2020 and can be found here.
Based in West Des Moines, LenderClose has developed a proprietary, technology-focused lending platform that injects speed and efficiency into the lending process. The technology solution shortens the lending cycle dramatically and, in some cases, takes it down to a few minutes vs. days or weeks.
“We’re focused on enabling the best user experience through innovative workflows and process automation,” said Jordan.
The platform has experienced exponential growth over the last 12 months, more than doubling its user base year over year. Nearly 200 credit unions and community banks use the LenderClose solution nationwide. LenderClose expects to exceed 300 financial institution clients in 2020.
LenderClose’s Series A round allowed for aggressive job creation and hiring in the Des Moines area. Over the past year, the company’s workforce has more than doubled from 15 to more than 30 full-time employees. The company expects to create 35 more positions over the next 12 months.
Ascentra Credit Union’s President and CEO, Dale Owen, cited the LenderClose leadership as a major contributor to the decision to invest in LenderClose.
“Leaders of the company are fixated on positioning community financial institutions for competitive dominance in their local markets,” Owen said. “Doing so requires a delicate balance of industry knowledge and digital technology expertise. It’s an equilibrium LenderClose has struck incredibly well by bringing on the right mix of tenured financial leaders and innovative technologists.”
Next Level Ventures leads $1.3 million investment in LenderClose -April 17, 2018
Q&A: Omar Jordan starts his second startup LenderClose – Oct. 3, 2017