Vouch uses and analyzes data from borrowers' social graphs to establish their creditworthiness. In addition, it also asks members of a borrower's network to "vouch" for them by agreeing to chip in if a person can't pay back a loan.
A San Francisco startup, Vouch, has raised $6 million in Series A funding in its bid to transform consumer lending. This round’s funding included backing by IDG Ventures USA, First Round Capital, Greylock, AngelList, Core Innovation Capital, Data Collective, Stanford StartX Fund and Cooley LLP. The social lending startup had already secured $3 million in funding in January of this year. “Vouch” literally means “to support as being true, certain, reliable.” Led by a team of ex-PayPal and banking executives, Vouch, which claims to be the first social network for credit, uses and analyzes data provided by borrowers’ family and friends in order to establish someone’s creditworthiness for loans. On its Twitter account, the credit-rating agency describes itself as “friend-powered finance.”