Existing investors Draper Fisher Jurvetson and Gotham Ventures also took part in the financing for LendKey, which was founded as a private student lending platform for financial institutions in 2008.
The company said it would use the new funds to expand its lending platforms into new asset classes and accelerate the growth of its lending clients.
Updata general partner Carter Griffin said, “In a market where federal student loans cover only a fraction of the cost of higher education, LendKey has grown substantially by allowing financial institutions to reach students in need of private loans.
“Looking ahead, Updata believes there are virtually unlimited opportunities to connect lenders and borrowers through LendKey’s cloud lending platform.”
In April technology-focused Updata led a $10.5m financing round for shopping social media company Collective Bias.
The business, which attempts to increase interest in online products through social media engagement with shoppers, said it planned to grow its team and improve its content management platform through the Series A funding.
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