Next-generation lending company Earnest had a very profitable 2015, raising $275 million dollars in debt and equity financing. They are rapidly growing and certainly have enough strategic partners and financial power to become the next go-to financial services company.
Student loans is a hugely popular branch of the finance industry at the moment, as companies such as SoFi attracted interest from investment groups and managed to raise massive amounts of funds. The entire year has been prosperous for other lender firms too, with CommonBonds raising $35 million dollars and many others achieving similar successes.
Battery Venures was the first one to invest in Earnest with $75 million dollars. Furthermore, a group of insurance companies, led by New York Life, soon followed with an investment of $200 million.
Financial tech companies in general received a huge number of investments in the year behind us, with over $11 billion dollars invested. In 2014, the total sum of investments was $6 billion dollars; around half of the past year. No other year had a larger sum of investments over the course of the last half of a decade.
Earnest’s CEO, Louis Earnest, reports that the company lends between $2 million and $5 million dollars daily on average. The amount of money they loaned increased by about 50 in 2015, as compared to 2014. The number of employees has grown significantly as well, and the company now employs over 160 people. A major breakthrough for Earnest was the nearly $20 million dollars they raised from Maveron earlier in 2015.
Though Earnest is mainly focused on student loan refinancing and consolidation, they also deal with personal loans as well. They offer competitive interest rates on student loan refinancing and their superior technology allows their customers to save money when making payments. All their prices are laid out in a precise fashion, which enables their customers to customize and adjust monthly payments as it suits them.
Earnest intends to grow even more in 2016 as they hope to hire 200 more employees. Real-time connected accounts with top tier software and exceptional customer service are the goals the company works toward, and CEO Louis Beryl believes that the model of business will significantly cut down the costs of operations. That will make the entire process of loaning money much more affordable for their customer base.
Earnest can easily use their lending expertise and superior technology to branch out to other markets too. With their professional staff, unique technology, top tier facilities, and expert customer service department, Earnest aims to establish a space where everyone can lend money in a smart, safe, and secure fashion.