Texas-based fintech startup CollateralEdge emerges from stealth with an oversubscribed $3.5m seed round
CollateralEdge, a Texas-based fintech company providing banks with a risk-mitigation tool to efficiently increase lending capacity without compromising credit quality, emerges from stealth mode with an oversubscribed $3.5 million seed round.
In addition to prominent Dallas venture firm Perot Jain, the round includes some of the most well-known business names in Texas, such as Kneeland Youngblood, founding partner of Pharos Capital Group, Sheldon Stein, president of Southern Glazer's Wine & Spirits, Derek Alley, CEO of VCC Construction, and Capital Factory CEO, Josh Baer.
CollateralEdge has developed an innovative technology solution to help regional and community banks safely extend debt capital to more businesses, ultimately boosting local economic growth. The company will use its announced funding to expand its team and product capabilities and accelerate its go-forward strategy and partnerships with community and regional banks.
Joe Beard, CEO and Co-founder, CollateralEdge: "The problem we are solving at CollateralEdge is vast, ongoing, and has plagued the middle market lending industry for decades. The beauty of our solution is that it solves a problem for all stakeholders. The business owner has more efficient access to lower cost debt, and the community or regional bank has an opportunity to win and retain more long-term business customers. CollateralEdge not only gives banks an opportunity to yield a greater profit, but it also facilitates the bank's ability to help the businesses in their communities thrive."
CollateralEdge is on a mission to reduce the barriers for small and mid-sized businesses to access lower-cost bank financing, while enabling community and regional banks to better address their customers' lending needs. The sophisticated solution mitigates risk in lending opportunities for banks, providing the ability to attract new business customers while also increasing their capacity to support and grow with current customers.
Joel Radtke, president, COO and Co-founder of CollateralEdge: "Where many fintech companies have found success by going around the bank, we are taking a different approach by partnering directly with banks to help them offer more competitive solutions. Our solution complements the bank's workflow and is integrated into the day-to-day underwriting process. It will also enhance the menu of financing options a relationship officer can deliver to a client, all while mitigating the risk to the bank."
Derek Alley, CEO, VCC Construction: "CollateralEdge has carefully assembled a very impressive group of investors and advisors with the experience, contacts and resources to support the company in addressing such an enormous opportunity in the banking market. Joe and Joel understand the value of experience and are building the company the right way to prepare for growth and scale."
In announcing the funding round, CollateralEdge also announced its Advisory Board, comprised of investment, technology and banking industry leaders.