Company:OnDeck Capital

From HandWiki
On Deck Capital, Inc.
TypePublic
IndustryFinance
GenreFinancial Technology
Founded2006
FounderMitch Jacobs
Headquarters
New York, New York,
United States
Key people
Noah Breslow (CEO),
Kenneth Brause (CFO)
ProductsSmall Business Loans, including Term Loans and Lines of Credit
Revenue$291.3 million (2016)
Number of employees
500
Websitewww.ondeck.com

On Deck Capital is a global online small business lending company[1] that is listed in the United States. It has offices in New York City ; Arlington, Virginia; and Denver, Colorado in the United States ; Toronto and Montreal in Canada ; and Sydney in Australia .[2]

History

Entrepreneur Mitch Jacobs[3] founded OnDeck in 2006 and headquartered the company in New York City.[4] Jacobs sought funding from VCs companies, with early investors including First Round Capital, Khosla, Village Ventures, Contour Venture Partners, RRE Ventures, SAP Ventures (now Sapphire Ventures), Google Ventures and Tiger Global Management.[5][6][7][8][9]

OnDeck uses proprietary software to aggregate data about a business’ operations, which is processed by an algorithm that determines loan eligibility.[10][11] In 2007, the company introduced its short-term loan product and made its first loan, and by early 2010, the company had made over $50M in loans to small businesses in the U.S.[12]

Jacobs left OnDeck in 2012, and Noah Breslow became the CEO. OnDeck completed its IPO in December 2014 and became listed on the New York Stock Exchange under the symbol ONDK, raising $230 million in the offering.[13] In 2015, the company expanded its operations into Canada and Australia,[14] the latter operating as On Deck Capital Australia Pty Ltd in partnership with MYOB.[15][16]

In January 2020, OnDeck announced the appointment of Scott Totman as the company's Chief Product and Technology Officer.[17]

Partnerships

In June 2016, JPMorgan Chase made a deal with OnDeck to offer an online lending process to its small business customers.[18] The bank uses OnDeck’s origination and loan servicing technology to supply small businesses with same or next-day funding.[19][20] JPMorgan Chase and OnDeck announced an extension of their collaboration in August 2017.[21] The JPMorgan Chase partnership ended in July 2019.[22]

OnDeck’s referral partners include Intuit QuickBooks, Angie’s List, Prosper Marketplace, Credit Karma, Wave Accounting, and WEX Inc.[23][24][25][26][27][28]

OnDeck is a founding member of the Innovative Lending Platform Association (ILPA), a trade organization representing online lending and service companies that serve small businesses.[29] In 2016, the ILPA, in partnership with the Association for Enterprise Opportunity, launched The SMART Box, a “model small business pricing disclosure...focused on empowering small businesses to better assess and compare finance options.”[30]

OnDeck also partners with SCORE, an American non-profit that provides small businesses with free advice and mentors.[31]

Criticisms

OnDeck Capital has been criticised for its high interest rates. In 2015, its average loan had an annual 51% interest rate.[32] In 2014, Bloomberg BusinessWeek called OnDeck "payday lending for businesses", relying on brokers who were "less-than-scrupulous."[33]

Awards

  • Crain’s New York Business Fast 50, 2013, 2014, 2015, 2016[34][35][36][37]
  • Forbes’ America’s Most Promising Companies, 2014[38]

References

  1. ↑ "OnDeck Capital" (in en). https://www.prnewswire.com/news-releases/ondeck-small-business-online-lending-tops-10-billion-300710891.html. Retrieved 9 November 2018. 
  2. ↑ "NYC Startup Uses Big Data To Disrupt Small Business Lending". https://www.businessinsider.com/on-deck-capital-business-model-lending-2013-6. Retrieved 9 November 2018. 
  3. ↑ "Contour Venture Partners". http://www.contourventures.com/index.html. 
  4. ↑ Slade, Hollie. "Small Business Algorithm Lender, OnDeck Raises $77M" (in en). Forbes. https://www.forbes.com/sites/hollieslade/2014/03/06/small-business-algorithm-lender-ondeck-raises-77m/#1390aef53d90. 
  5. ↑ "Working Capital (Debt) Financing For Entrepreneurs: Mitch Jacobs, Founder And CEO, On Deck Capital (Part 1) | Sramana Mitra" (in en-US). Sramana Mitra. 2010-06-28. http://www.sramanamitra.com/2010/06/28/working-capital-debt-financing-for-entrepreneurs-mitch-jacobs-founder-and-ceo-on-deck-capital-part-1/. 
  6. ↑ "OnDeck" (in en-US). http://www.rre.com/ondeck-1. 
  7. ↑ Empson, Rip. "On Deck Adds $17M From Google Ventures And Peter Thiel To Help Small Businesses Connect With Capital" (in en). TechCrunch. https://techcrunch.com/2013/05/01/on-deck-adds-17m-from-google-ventures-and-peter-thiel-to-help-small-businesses-connect-with-capital/. 
  8. ↑ "On Deck Capital Has Received Series C Funding from SAP Ventures: Signal Hill". http://www.signalhill.com/transactions/detail/on-deck-capital-has-received-series-c-funding-from-sap-ventures. 
  9. ↑ Chapman, Lizette (2014-03-06). "OnDeck Capital Raises $77M Led by Tiger Global to Expand Small Business Lending" (in en-US). https://blogs.wsj.com/venturecapital/2014/03/06/ondeck-capital-raises-77m-led-by-tiger-global-to-expand-small-business-lending/. 
  10. ↑ "The State of Small Business Lending: Credit Access during the Recovery and How Technology May Change the Game". http://www.hbs.edu/faculty/Publication%20Files/15-004_09b1bf8b-eb2a-4e63-9c4e-0374f770856f.pdf. 
  11. ↑ "OnDeck Capital Inc. - Filings & Reports - SEC Filings - SEC Filings Details" (in en-CA). https://investors.ondeck.com/public-filings/sec-filings/sec-filings-details/default.aspx?FilingId=11235621. 
  12. ↑ "An innovative alternative to bank credit". http://www.crainsnewyork.com/article/20100423/BLOGS05/304239998/an-innovative-alternative-to-bank-credit. 
  13. ↑ "Form 10-K". https://www.sec.gov/Archives/edgar/data/1420811/000119312515085523/d851079d10k.htm. 
  14. ↑ "OnDeck Australia Review". Small Business Loans Australia. http://smallbusinessloansaustralia.com/ondeck-review-borrowers/. Retrieved 2017-12-29. 
  15. ↑ "Online loans for small business: New lenders set to transform financial services" (in en). CBC News. http://www.cbc.ca/news/business/ondeck-one-of-the-new-innovators-in-small-business-lending-1.3052555. 
  16. ↑ "US online business lender OnDeck to set up in Australia". The Sydney Morning Herald. http://www.smh.com.au/business/banking-and-finance/us-online-business-lender-ondeck-to-set-up-in-australia-20150414-1ml9f0.html. 
  17. ↑ Hurst, Samantha (2020-01-29). "OnDeck Appoints Scott Totman as New Chief Product & Technology Officer" (in en-US). https://www.crowdfundinsider.com/2020/01/156887-ondeck-appoints-scott-totman-as-new-chief-product-technology-officer/. 
  18. ↑ Simon, Peter Rudegeair, Emily Glazer and Ruth. "Inside J.P. Morgan’s Deal With On Deck Capital" (in en-US). WSJ. https://www.wsj.com/articles/inside-j-p-morgans-deal-with-on-deck-capital-1451519092. 
  19. ↑ "An In Depth Look at the OnDeck/JPMorgan Chase Deal - Lend Academy" (in en-US). Lend Academy. 2015-12-04. http://www.lendacademy.com/an-in-depth-look-at-the-ondeckjpmorgan-chase-deal/. 
  20. ↑ Feldman, Amy. "Why JPMorgan Chase And On Deck Capital Are Teaming Up To Offer Small Business Loans" (in en). Forbes. https://www.forbes.com/sites/amyfeldman/2015/12/01/why-jpmorgan-chase-and-on-deck-capital-are-teaming-up-to-offer-small-business-loans/#31b3b0a36d63. 
  21. ↑ "JPMorgan Chase OnDeck Extend Digital Banking Lending Partnership for SMBs". http://www.pymnts.com/smbs/2017/jpmorgan-chase-ondeck-extend-digital-banking-lending-partnership-for-smbs/. 
  22. ↑ "JPMorgan Chase ends business loan partnership with OnDeck". https://www.americanbanker.com/news/jpmorgan-chase-ends-business-loan-partnership-with-ondeck/. 
  23. ↑ "Intuit and OnDeck to Launch $100M Small Business Lending Fund" (in en-US). http://investors.intuit.com/Press-Releases/Press-Release-Details/2015/Intuit-and-OnDeck-to-Launch-100M-Small-Business-Lending-Fund/default.aspx. 
  24. ↑ "Angie's List Teams with OnDeck (:ANGI)" (in en). http://investor.angieslist.com/releasedetail.cfm?ReleaseID=907350. 
  25. ↑ Inc., On Deck Capital. "Prosper Marketplace And OnDeck Announce Strategic Partnership" (in en). http://www.prnewswire.com/news-releases/prosper-marketplace-and-ondeck-announce-strategic-partnership-300065272.html. 
  26. ↑ "Small Business Loans | Credit Karma". https://www.creditkarma.com/shop/business-loans. 
  27. ↑ Wave. "Small Business Loan and Line of Credit from Wave". https://www.waveapps.com/lending/. 
  28. ↑ "WEX and OnDeck for Better Small Business Financing" (in en-US). Corporate Payments Insights. 2017-01-25. https://www.wexinc.com/wex-corporate/wex-partners-with-ondeck-for-better-small-business-financing/. 
  29. ↑ "Innovative Lending Platform Association" (in en-US). http://innovativelending.org/. 
  30. ↑ "SMART Box - ILPA" (in en-US). ILPA. http://innovativelending.org/smart-box/. 
  31. ↑ "OnDeck Business Loans | SCORE" (in en). https://www.score.org/ondeck-business-loans. 
  32. ↑ Quittner, Jeremy (13 March 2015). "How OnDeck Plans to Make Alternative Lending a Blue Chip Business". Inc.. https://www.inc.com/jeremy-quittner/on-deck-wants-to-make-alternative-lending-mainstream.html. Retrieved 16 September 2017. 
  33. ↑ Faux, Zeke; Lawrence, Dune (13 November 2014). "Is OnDeck Capital the Next Generation of Lender or Boiler Room?". Bloomberg BusinessWeek. https://www.bloomberg.com/news/articles/2014-11-13/ondeck-ipo-shady-brokers-add-risk-in-high-interest-loans. Retrieved 16 September 2017. 
  34. ↑ "No. 1 Convene - 2013 Fast 50 | Crain's New York Business". Crain's New York Business. http://www.crainsnewyork.com/gallery/20131006/FEATURES/926009999. 
  35. ↑ "2014 Fast 50 | Crain's New York Business". Crain's New York Business. http://www.crainsnewyork.com/gallery/20141012/FEATURES0101/101209996. 
  36. ↑ "Crain's New York Business - Fast 50". http://www.crainsnewyork.com/features/2015-fast50. 
  37. ↑ "Crain's names 50 fastest-growing companies in 2016". http://www.crainsnewyork.com/features/2016-fast50. 
  38. ↑ "OnDeck on the Forbes America's Most Promising Companies List" (in en). Forbes. https://www.forbes.com/companies/ondeck/. 




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