Avant (company)
| Company type | Private |
|---|---|
| Industry | Financial technology |
| Founded | 2012 |
| Founder | Albert "Al" Goldstein, John Sun, Paul Zhang |
| Headquarters | Chicago , United States |
Area served | United States, Canada, United Kingdom |
Key people | Albert "Al" Goldstein (CEO), Paul Zhang (CTO) |
| Products | Unsecured personal loans, lending platform |
Number of employees | 650+ (2015) |
| Website | avant |
Avant, LLC, previously known as AvantCredit, is a privately held financial technology firm based in Chicago. Established in 2012 by serial entrepreneur Albert "Al" Goldstein along with John Sun and Paul Zhang, Avant began as a mid-prime lender, issuing its inaugural unsecured personal loan in early 2013 by utilizing proprietary technology to evaluate credit risk.
The company's platform combines algorithms, machine learning, and data analytics with conventional consumer information to tailor loan terms, amounts, and interest rates. Launching operations in 16 states in 2013, Avant has since expanded its lending services to 46 states and extended its footprint internationally to Canada and the United Kingdom by the end of 2013.
From 2012 through 2015, Avant saw swift growth, originating loans exceeding $1 billion and securing $1.4 billion in investment capital from firms such as August Capital, Tiger Global Management, and Victory Park Capital. These funds facilitated the expansion of Avant’s product offerings and presence within the consumer finance and fintech sectors.
Overview
Avant entered the burgeoning financial technology FinTech arena by creating proprietary software that employs machine learning to reduce risks related to defaults and fraud. The company provides a fully digital lending process, enabling applicants to complete loan requests online through its website, simplifying borrowing by incorporating internet-based employment verification and rapid funding.
In April 2015, Avant introduced the Avant Institutional Marketplace with primary investors including Kohlberg Kravis Roberts, Victory Park Capital, and Jefferies. This $400 million forward-flow financing agreement allows institutional investors to acquire loans originated via Avant’s platform, broadening the company’s capital sources and supporting its business expansion.
Company establishment
Following their graduation from the Y Combinator startup accelerator in 2012, founders Sun and Zhang initially created Debteye, a platform designed to assist users with debt management. Sun’s own difficulties obtaining a personal loan from traditional lenders inspired the foundation of Avant.
In December 2012, they partnered with Chicago-based entrepreneur Al Goldstein to develop a simplified borrowing solution. Headquartered in Chicago, Avant secured $1 million in seed capital and has since raised over $1 billion. The company grew from three founders to a workforce exceeding 650 employees by April 2015, demonstrating substantial market traction and organizational growth.
Acquisition of ReadyForZero
In February 2015, AvantCredit acquired the debt management application ReadyForZero and rebranded as Avant. This acquisition aligned strategically with Avant’s mission to reduce borrowing costs and obstacles. It also prompted the opening of a second office in Los Angeles, where ReadyForZero was originally launched by Rod Ebrahimi and Ignacio Thayer—fellow Y-Combinator alumni like Avant’s founders.
Nonetheless, on November 12, 2016, Avant discontinued ReadyForZero’s credit score monitoring and debt planning services, deactivating all user accounts without publicly explaining the reasons behind this decision.
Recognition
In 2015, Avant was positioned at number six on Forbes' list of America's Most Promising Companies and was featured among Forbes' Next Billion Dollar Startups. CTO Paul Zhang earned a spot on Inc. Magazine's 30 Under 30, while CEO Al Goldstein was honored with the Ernst & Young Entrepreneur of the Year award for the Midwest region. The company has received various distinctions, such as the Moxie Award for Breakthrough Digital Company of the Year and the American Business Awards' Company of the Year in Financial Services, along with being acknowledged as a Top Global Private Company by AlwaysOn.
In 2014, Avant raised $225 million in equity capital from investors including Tiger Global Management, Peter Thiel—co-founder of PayPal—and private equity firm KKR, which substantially enhanced its financial standing and fueled its expansion.
Controversies
On April 15, 2019, Avant consented to a $3.85 million settlement addressing Federal Trade Commission allegations concerning misleading loan servicing practices that breached both the Telemarketing Sales Rule and the Electronic Fund Transfer Act.
Spinoff
In February 2020, Avant finalized the separation of its SaaS financial technology division, establishing it as an independent entity named Amount. This strategic move aimed to prepare Amount for a potential initial public offering and diversify Avant’s business approach.