NerdWallet acquires Fundera small business lending marketplace – TechCrunch
Financial guidance company Nerdwallet announced at the end of last week that it had acquired Fundera. New York-based Fundera was co-founded in 2013 by Jared Hecht, who previously co-founded GroupMe. He created a market where small businesses could find loans, subsequently expanding into other areas like legal services, while also offering (like NerdWallet) free financial content.
“This can be the wild Wild West for small business owners,” Hecht said in a statement. “Finding the financial products and advice needed to start, grow and finance their business can be very difficult, and most small business owners don’t have a resource or partner to support them along their journey. Bringing transparency to this process and educating, empowering and advocating for business owners is so similar to what we see NerdWallet doing in the consumer space. “
And of course, small businesses may be in particularly urgent need of assistance now, given the impact of the pandemic.
According to the announcement, Fundera will operate as a subsidiary of NerdWallet, with the entire team making the transition. The goal is to help NerdWallet grow in the small and medium business market with both content and real funding.
“While we offer free tools and content, we have never been able to fully support small business owners – that is changing today,” said NerdWallet co-founder and CEO Tim Chen. “Fundera has been one of our partners for several years and their deep understanding of the SME market, the long-standing relationships of trust they have forged with lenders and business owners, and their commitment to pushing forward. needs of small business owners at the forefront. is truly unique and impressive.
Financial terms of the acquisition were not disclosed. Fundera had raised $ 18.9 million in funding from investors including QED Investors, Khosla Ventures, First Round Capital and Susquehanna Growth Equity, according to Crunchbase.
This is NerdWallet’s second acquisition in 2020, having previously acquired in UK Know Your Money. The company says it has been growing and profitable for several years.