14 JUNE 2016
Market-leading Australian fintech Valiant Finance secures a seed fundraising round to continue growing their small business loans marketplace
Valiant Finance has secured a seed fundraising round of $800,000 to continue the development of its platform connecting small business owners to alternative sources of funding. Investors participating in the round include Westpac’s venture capital arm, Reinventure, Sydney-based fintech accelerator, H2 Ventures, and a number of angel investors.
The announcement comes off the back of Valiant’s beta release in November 2015, followed by the unveiling of the adviser dashboard in April 2016. Valiant Finance was co-founded by former bank consultant at McKinsey, Alexander Molloy, and former technology analyst at Credit Suisse, Ritchie Cotton.
In the current lending climate, small businesses often find it challenging to raise the capital they need as traditional lenders tend to have a low tolerance of risk. It can be virtually impossible for Australian business owners to find a loan that lends weight to their personal preferences.
“A lot of banks don’t feel comfortable serving small business, and require property security, which has created a pain point,” Molloy said.
“If there is no residential security backing the deal, then banks need to hold around six times the level of capital in reserve as of June. From a Treasury perspective, bankers are encouraged to write deals with security because the banks will be punished in terms of risk weighted assets just because a loan is not residentially-backed, even if the business is creditworthy.”
Valiant will use the funds to grow the team, train the smart algorithm and continue its mission of supporting the growth and success of SMEs.
The Valiant platform features 26 alternative lenders, including Spotcap, Moula and Kikka Capital, and a smart algorithm maps the lending criteria of each partner against the personal preferences of the business owner.
About the Valiant platform
Valiant Finance is a business loan marketplace that matches borrowers to lenders, with the aim of removing the barriers that prevent Australia’s small-to-medium enterprises from scaling and growing. Using a proprietary algorithm that identifies the best loan product for the customer, the platform improves the experience for the business owner and saves the lender time by pre-vetting the borrower.
Products available through the Valiant Finance platform include:
- Unsecured business loans;
- Secured term loans;
- Line of credit;
- Equipment finance;
- Debtor financing;
- Merchant cash advances; and
- Business credit cards.
Alex Molloy Cofounder & CEO
Ritchie Cotton Cofounder & Head of Product
[email protected] / 0448 488 123 Nathalie Jones Communications Manager