US digital lender Presta raises $3.3m to fund expansion
US-based digital lending platform Presta has launched after raising $3.3m (£2.7m) in an oversubscribed fundraiser.
Presta is backed by Distributed Ventures, with additional investment from Zeal Capital Partners, Matchstick Ventures, The Fund, Tech Stars and Jumpstart Ventures.
The company said the cash injection would support the continued growth of its digital platform. Presta’s software creates a one-stop shop for lenders, freeing them from managing the manual parts of their lending process including applications, underwriting, closing, servicing and reporting.
Presta said thousands of lenders originate more than $650bn in small business loans every year, yet almost 60 per cent of community banks, which are one of the main originators of small business loans, do not offer online applications.
Read more: P2P lending retains its edge as base rate rises
“A major industry pain point we continuously hear from lenders is the need to bring their lending processes into the 21st century,” said Leopoldo Peña, chief executive of Presta.
“Presta’s platform is tailor-made for small businesses and commercial lenders to accelerate the loan application and determination process.
“The impact of Presta’s digital lending infrastructure extends far beyond bottom-line benefits for its customers and streamlines the loan origination process, empowering lenders to prioritise relationship building.”
Read more: Call for UK fintechs to reveal their global expansion plans
Co-founded by Peña and Peter Truog, Presta builds on the success of the founders’ first company, The Opportunity Exchange, which helped cities connect local businesses to equity investors.
“Recognising the need to modernise the lending process, Presta’s platform helps community banks step into the future of digital lending,” said Shawn Ellis, managing partner at Distributed Ventures.
“Our fund is committed to backing fintech pioneers and innovators that yield improved experiences and outcomes for financial institutions and their customers.
“Presta focuses on the often-overlooked segment of community banks and credit unions by bringing many of the functions they manage disparately today all together on one platform.”
Read more: UK fintech investment ranks second globally