Lend-Grow

Lend-Grow

Online lending marketplace connecting borrowers with local lenders in 28 states

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Security Type
Convertible Note
Categories
Other
Min Investment
$100
Location
Reston, VA
Offering Date
July 17, 2020
Expected Close Date
October 19, 2020
Target Raise
$50.00K-$2.00M
Deal Notes

In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the price per share paid on a $10 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

Lend-Grow is attempting to solve a need in the online lending marketplace by matching borrowers with smaller, local, and regional lenders who can provide competitive offers and high-quality customer service. As an online lending marketplace, borrowers have the opportunity to check their loan rates in minutes and get connected to a local or regional bank willing to offer various consumer loans. Within minutes of filling out basic financial information, approved borrowers can select from a variety of pre-qualified offers that meet their preferred payment options from local SMLs who are willing to service the loan.

Key Deal Facts

Lend Grow currently is operational within 28 states and plans to grow to all 50 in early 2021
Borrowers were matched with loans totaling over $15 million in May 2020 on the Lend-Grow marketplace
Partnered with lenders that include Blue Ridge Bank, Ascent Funding, and Citizens Bank who have committed an aggregate $500+ million in annual closed loan lead flow capacity
Partnered with Deluxe Financial Services, iQuanti, Bassett Capital, and Stifel Investment Bank to further attract borrowers and banks to the Lend-Grow marketplace

Use of Proceeds

Minimum ($50,000) Use of Proceeds:

  • Intermediary Fees: $1,500
  • Growth (marketing): $23,750
  • Internal Development: $11,875
  • Licenses and Marketing: $7,125
  • Operations: $5,750

Maximum ($2,000,000) Use of Proceeds:

  • Intermediary Fees: $60,000
  • Growth (marketing): $950,000
  • Internal Development: $475,000
  • Licenses and Marketing: $285,000
  • Operations: $182,774
  • Repayment of Debt: $47,226

Deal Notes

In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the price per share paid on a $10 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Amount Raised : $608,355
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Business Traction
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Valuation

Security Description

A convertible security is a security that can be converted into another security, typically equity in the next round of financing.

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