May 14, 2015: Friend in need is friend indeed, yes, you can help your friends get through difficult times by helping them get loan by vouching for them on a first of its kind social media network platform called Vouch. The San Francisco based social network for credit Startup Vouch founded by ex-Prosper and ex-Paypal alumni, has raised $6 million in Series A funding to continue to grow its business. The unique feature of this credit service company is, it will count your social connections to know your credit-worthiness in addition to the current credit-score system banks commonly use.
The company's CEO Yee Lee says, "We didn't just look an individual and figure out how trustworthy is this one person in isolation," He further adds, "We instead looked at the network that's around that particular party and tried to figure out some cues."
The investment round is led by Core Innovation Capital, Data Collective, Stanford StartX Fund and Cooley LLP. The company raised $9.6 million in total till date combining earlier seed round.
To apply for a loan, borrowers must sign up for an account online or on mobile, Then, invite their friends to join their network. As name suggests, friends in their network can vouch for the borrower by choosing an amount they agree to pay if the the borrower defaults the loan.
About Vouch
Founded in 2013, the Startup was in beta mode before launching it officially last month. The Startup aims to apply new types of data to the process of granting loans at lower rates than traditional lender or borrowers. The company has claims to have offered $500 to $7,500 loans till now with interest rates somewhere between 5 percent and 30 percent.
As TechCrunch reports, today, the company has originated a million in loans, and its expanded network has thousands of users, including borrowers and sponsors. The majority of the loans are in good standing, too.
Source: TechCrunch.com
The investment round is led by Core Innovation Capital, Data Collective, Stanford StartX Fund and Cooley LLP. The company raised $9.6 million in total till date combining earlier seed round.
To apply for a loan, borrowers must sign up for an account online or on mobile, Then, invite their friends to join their network. As name suggests, friends in their network can vouch for the borrower by choosing an amount they agree to pay if the the borrower defaults the loan.
About Vouch
Founded in 2013, the Startup was in beta mode before launching it officially last month. The Startup aims to apply new types of data to the process of granting loans at lower rates than traditional lender or borrowers. The company has claims to have offered $500 to $7,500 loans till now with interest rates somewhere between 5 percent and 30 percent.
As TechCrunch reports, today, the company has originated a million in loans, and its expanded network has thousands of users, including borrowers and sponsors. The majority of the loans are in good standing, too.
Source: TechCrunch.com
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