Subscribe
Logo
Logo
  • Topics Icon Topics
    • AI Icon AI
    • Banking Icon Banking
    • Blockchain/DeFi Icon Blockchain/DeFi
    • Embedded Finance Icon Embedded Finance
    • Fraud/Identity Icon Fraud/Identity
    • Investing Icon Investing
    • Lending Icon Lending
    • Payments Icon Payments
    • Regulation Icon Regulation
    • Startups Icon Startups
  • Podcasts Icon Podcasts
  • Products Icon Products
    • Webinars Icon Webinars
    • White Papers Icon White Papers
  • TechWire Icon TechWire
  • Search
  • Subscribe
Reading
Upstart Closes a $35M Funding Round Led by Third Point Ventures
ShareTweet
Home
Peer to Peer Lending
Upstart Closes a $35M Funding Round Led by Third Point Ventures

Upstart Closes a $35M Funding Round Led by Third Point Ventures

Peter Renton·
Peer to Peer Lending
·Jul. 16, 2015·1 min read

Upstart is gearing up for growth. One of the newer marketplace lenders announced some big news today. They have closed a $35 million Series C led by Third Point Ventures. This is the largest funding round ever for the company and will provide them with the resources they need to scale. Ryan wrote a detailed investor review of Upstart a few weeks ago and we introduced them to Lend Academy readers here.

I caught up with Upstart CEO Dave Girouard earlier this week to talk about this funding round and to get an update. He told me that Upstart has been growing steadily. After launching in May last year they have issued nearly 9,000 loans totaling more than $125 million. They are up to 65 employees now and with this new round they are “doubling down on data science and engineering” according to Dave.

One of the unique things about Upstart is that they have done a lot of analysis around education – their use of the school and major of a borrower, along with traditional credit data, is an integral part of their underwriting model. But they are looking at other data sources as well.

The goal of any underwriting model is to predict future behavior. Upstart is looking more closely at employer information now. Certain companies will have more layoffs in a downturn, so they are looking to add these kinds of signals to their underwriting.

While just over a year of track record is not a long time it is enough to give us some idea as to how Upstart are doing. They are the only company that publishes their results on actual versus predicted delinquencies. You can see how they are doing in the chart below.

Actual versus Estimated delinquencies at Upstart

A New Self-Directed IRA

When I asked Dave about the investor mix he said that institutional investors fund the vast majority of their loans. He admitted they had not put a lot of effort into retail investors but that was about to change. Later this month they will be introducing a self-directed IRA product for retail investors, which is a step in the right direction.

Upstart is going about the business of creating a new kind of marketplace lending platform. They are a data driven company that is pushing the industry forward.

You can read more details about Upstart’s announcement on their blog.

  • Peter Renton
    Peter Renton

    Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

    View all posts

Tags
marketplace lendingUpstartventure capital
Related

Fintech’s future predicted in Team8 report

The Side of Sam Altman You May Not Know: Global Fintech Investor

Banking-as-a-Service is not dead and other lessons from Fintech Meetup

Upstart reports decent Q4 2023 earnings but provides weak guidance

Popular Posts

Today:

  • Paraform Founders, Jeffrey Li and John KimFunded: Paraform raises $20M to put top recruiters, not AI, in the driver’s seat Jun. 27, 2025
  • Revised-AI-InvoiceAI Faces Skepticism. Startups Say: OK, Pay When it Works Jun. 25, 2025
  • GreenliteAI-Alex-WillGreenlite AI is on a mission to revolutionize banking compliance Jun. 10, 2025
  • Ironclad State of AI ReportThe Economics of AI Trust Jun. 11, 2025
  • WP-Funded2Funded: Maze nabs $25M Series A to stop cloud breaches before they start Jun. 13, 2025
  • Ahead of AIOutsmart Pricing Objections Before They Arise with AI Jul. 1, 2025
  • TechNexus The AI IssueSteal Like an AI? Defining Fair Use & Creativity Jun. 25, 2025
  • PayabliFunded: Payments infrastructure co Payabli lands $28M Series B to AI-ify Jun. 20, 2025
  • TechNexus The AI IssueThe AI Paradox Jun. 18, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025

This month:

  • WP UmbrellaTo Bank or Not to Bank: The ILC Question Jun. 5, 2025
  • GreenliteAI-Alex-WillGreenlite AI is on a mission to revolutionize banking compliance Jun. 10, 2025
  • Current stablecoin adoptionWhy Banks (and Fintechs) Need to Embrace Stablecoins Today Jun. 12, 2025
  • ai-work-nexusWalkMe Vets Declare War on SaaS Bloat with $10M Seed for Autonomous Agents Jun. 10, 2025
  • DanMurphy-FN-headshotCFPB’s Next Open Banking Battle Begins Jun. 3, 2025
  • Jon StonaTips from Airwallex x McLaren on Making the Best of a Fintech Sponsorship  Jun. 18, 2025
  • Ironclad State of AI ReportThe Economics of AI Trust Jun. 11, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025
  • Ben Hemani, Founding Partner at Bison VenturesThe Risk and Reward of Betting Big on AI’s Next Frontier Jun. 4, 2025
  • Globe-money-symbolsOPINION: Why Brazil and India are leading the global digital shift through payment innovation Jun. 24, 2025

  • About
  • Contact
  • Disclaimer
  • Privacy Policy
  • Terms
Subscribe
Copyright © 2025 Fintech Nexus
  • Topics
    • AI
    • Banking
    • Blockchain/DeFi
    • Embedded Finance
    • Fraud/Identity
    • Investing
    • Lending
    • Payments
    • Regulation
    • Startups
  • Podcasts
  • Products
    • Webinars
    • White Papers
  • TechWire
  • Contact Us
Start typing to see results or hit ESC to close
lis digital banking USA Lending Club UK
See all results