Business lending marketplace P2Binvestor (P2Bi) has raised $7.7m in a Series A1 round led by Rockies Venture Club (RVC).
Funding also came from Japanese VC firm Future Venture Capital through its US subsidiary, FVC Americas.
The marketplace lender provides revolving lines of credit of up to $10m to B2B borrowers secured by assets such as accounts receivable or inventory to a borrower company after conducting an underwriting review of the applicant and approving the credit.
The Denver-based firm operates similarly to a debt-based alternative lender that use a network of retail and institutional investors to crowdfund credit lines.
P2Bi CEO and co-founder Krista Morgan said the company is attracting more users as venture funding hits, “a two-year low and more entrepreneurs are looking for ways to grow their business while preserving their equity using good-quality, flexible debt.”
Since May 2014 the firm has funded $350m-plus in revolving credit to more than 80 borrowers and counts 150 retail and institutional investors among its crowd.
P2Bi says it expects to generate $8.2m in in revenue this year and become cash-flow positive in 2017.
The investment is Future Venture Capital first outside of Japan.
The firm’s chief strategy office Yuji Fujinaga said that its was as a result of, “finding a high quality investment opportunity like P2Bi in Colorado and working with a partner like RVC to co-invest,” that confirmed its decision to open its first subsidiary office outside Japan.
Morgan says P2Bi will use the new capital to “expand operations and invest in sales, marketing, and technology.”
The company secured a deal in April with investment advisor MW Eaglewood Americas that would see $5m earmarked support debt facilities to P2Bi’s borrowers.
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