The FinTech Capify has pulled in an additional $10 million in an equity round of funding and is banking on continued support from the Goldman Sachs Merchant Banking Division for its lending platform, which is geared to small to medium-sized businesses (SMBs).
“The fact that we were able to raise $10 million for an online small-business lender in the midst of a global pandemic from sophisticated investors with industry experience speaks to Capify’s business model, the unprecedented opportunity ahead of us and its management team,” said David Goldin, New York-based Capify founder and CEO, in a press release.
“We believe demand by small businesses seeking access to unsecured capital will be at unprecedented levels because most businesses have already accessed the government-backed business loan programs in the U.K. and Australia market,” said Goldin in the release. He added that SMBs “will still need additional capital – as do the many businesses that didn’t qualify for the government-guaranteed programs.”
Capify is an online alternative lender that serves SMBs in the U.K. and Australia seeking “to sustain or grow their business.” The FinTech has been operating in those markets for over 12 years.
“It is crucial at this time that small businesses are aware of alternative funding solutions to support cash flow or invest in their future,” added John Rozenbroek, Capify’s COO/CFO. “Capify is one of the few online small-business lending platforms in the marketplace that can” meet the needs of SMBs, he noted.
For its part, Marcus by Goldman Sachs offers online savings accounts, certificates of deposit (CDs) and personal loans. Marcus is a division of the investment banking giant formed in 1869 by Marcus Goldman.