Another 1 Bn lending platform
Social Finance Inc., better known as SoFi, raised $200 million in a Series D funding round on Tuesday that values the peer-to-peer (P2P) student loan startup at $1.3 billion, just ahead of its IPO later this year. Third Point Ventures led the round, which also included Wellington Management Company, Institutional Venture Partners and existing investors. Goldman Sachs served as sole placement agent to the company on the financing. The San Francisco-based company was co-founded by CEO Michael Cagney in 2011 and has become a leading provider of student loan refinancing, primarily servicing graduates of top universities. SoFi will use the new funds to fuel the expansion of its consumer lending products throughout the U.S. and build out its marketplace with new options for investors.