Mid-market firm Victory Park Capital (VPC) has agreed to invest $100m in Upstart loans over the next two years.
Upstart provides finance to people based on their potential, including schools attended, area of study, academic performance, and work history.
The company was launched earlier this year and has provided more than 500 loans totalling more than $7.5m. It said that it receives more than 1,000 loan applications daily and has yet to experience a delinquent payment.
VPC vice-president Tom Welch said, “Based on Upstart’s successful launch, innovative management team, and our experience in the specialty finance industry, we believe Upstart is well positioned for success as the platform scales over time.
“We are excited to partner with the Upstart team and are confident they will succeed in a market that continues to be underserved by traditional providers of consumer credit.”
In June this year AltAssets reported that Victory Park was looking to raise $400m for its new debt fund.
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