Online student loan marketplace, CommonBond, raised $35m in Series B financing, led by August Capital. This is a great indicator of the companies market strength, as regulatory scrutiny has caused many banks to pull bank from the $1.3t student loan market.
Online student lender CommonBond Inc said on Tuesday it has raised $35 million in its latest round of funding, as investment for marketplace lending companies continues to climb. The New York-based company declined to give its overall valuation following the raise, but said the funding was from new investors August Capital and Nyca Partners, as well as existing investors. CommonBond's current investors include former Citigroup Inc Chief Executive Vikram Pandit, former Thomson Reuters Corp CEO Tom Glocer and ex-Barclays Plc wealth head Tom Kalaris. "Marketplace lending is moving from marginal to mainstream in 2015," CommonBond CEO David Klein said in an interview. Klein said the funding will be used to expand the company's operations and to build out its team and technology.