Existing investors RRE Ventures, SAP Ventures and First Round Capital also supported the fundraising effort.
The funds will be used to speed up the company’s growth via technology innovation, new product development and improved access to wholesale funding sources, the company said.
On Deck – which uses data aggregation and electronic payment technology to evaluate the financial health of SMEs – also plans to increase its marketing spend. To date the company has deployed $400m to thousands of small and medium sized businesses across the US.
Following the fundraising, IVP general partner Sandy Miller has joined On Deck’s board of directors. He has previously led investments in AddThis, Care.com, Fleetmatics, ngmoco, One Kings Lane, Vonage and Zynga.
Noah Breslow, chief executive officer of On Deck, said, “On Deck will provide more capital to small businesses in 2013 than it did during the previous five years in total.
“This investment provides On Deck with greater capacity and resources to bring technology-enabled finance to the mainstream of the American small business market. We were attracted to IVP’s 33-year track record of collaborating with pioneering technology companies, as well as Sandy’s personal involvement with over 100 technology IPOs.”
IVP has $4bn in committed capital and has invested in more than 300 companies, 93 of which have gone public.
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