Some particularly large sums of money were invested in the online lending space recently. Among the largest spenders were J.P. Morgan, who invested $325 million dollars to Avant, General Atlantic, and several other firms that deal in similar aspects. Lending Club LC submitted a report about their successful year to the U.S. Treasury as well.
SoFi received their heftiest investment to date in their Series E round led by Soft Bank. $1 billion dollars was raised; a staggering sum that is the single largest investment in the history of financial technology space. With investments and rapid growth, SoFi is looking to branch out and employ new expert personnel in order to perform tasks that come with expansion with utmost efficiency.
Focusing mainly on student loan refinancing, the San Francisco chapter of SoFi loaned a staggering amount of over $7 billion dollars so far. Not all was pointed towards student loan refinancing as they operated in mortgage and consumer loan areas as well. Sofi topped was previously able to raise $200 million in their Series D, led by an investment from Third Point Ventures.
Many shareholders choose to return to invest in SoFi again this year, which proved to be incredibly profitable for them. Wellington Management, RenRen, Baseline Ventures, DCM Ventures and Institutional Venture Partners all had previous business relationships with SoFi and decided to continue investing in the company this year. Since previous business engagements with SoFi have been profitable, investors are all trying to continue this cooperation in the future, giving SoFi a chance to grow and significantly increase the volume of their operations.
Co-founder of SoFi, Mike Cagney, is welcoming the incoming capital. A higher pace of growth is what the company needs right now, he says, as it will allow them to become a true financial powerhouse in the near future. Naysayers were concerned that the huge capital could prevent the company’s initial goals from coming to life, but CEO Masayoshi Son says that no such thing will happen, and the new capital will help them maintain current efficiency while working on long-term goals.
Student loan refinancing has been SoFi’s main moneymaker, as 60 percent of all deals are aimed toward that particular branch. SoFi created deals totaling more than $5 billion dollars this year, and plan to double that in 2016. Even though student loans are a priority for the company, they have branched out into mortgages and consumer loans as well.
To fulfill their ambitious projects, SoFi introduced two well-known names from the industry to their employee list. Joanne Bradford will perform the duties of Chief Operating Officer, and Arthur Levitt will put his experience and knowledge to good use by serving as advisor to the company. The two have been very successfully in their own right, Levitt was a SEC chairman and Joanne Bradford was a Pinterest executive.
This news comes just days after Earnest raised a $275 million round.