StreetShares
| Company type | Private |
|---|---|
| Industry | Financial technology |
| Founded | 2014 |
| Founder | Mark L. Rockefeller, Mickey Konson, Ben Shiflet |
| Headquarters | Washington, D.C. metropolitan area , United States |
Area served | United States |
| Products | Small business financing, peer-to-peer lending platform, white-label banking software |
| Website | streetshares |
StreetShares, Inc. is a financial technology firm focused on providing small business financing via an online marketplace, with its headquarters located near Washington, D.C..
History
Established in 2014 by Mark L. Rockefeller, Mickey Konson, and Ben Shiflet, StreetShares initially targeted military veterans through a peer-to-peer lending platform. In May 2014, the company secured $1.2 million in seed capital from a diverse group of investors including the global microfinance organization ACCION International, community bankers from Washington D.C., veteran investors, angels affiliated with Harvard Business School, and former employees of Capital One.
Between 2014 and 2016, StreetShares utilized a “veterans funding veterans” approach, capitalizing on the social connections within the military community to lower both lending risk and costs. Funding was sourced from supporters via a reverse-auction process that combined the most competitive bids into consolidated loans.
Starting in 2015, StreetShares committed to transparent lending aligned with the principles of the Small Business Borrowers Bill of Rights. The following year, it became the first company in the U.S. to receive SEC approval for a public social impact investment product aimed at veterans under Regulation A+ of the JOBS Act, allowing public participation in lending through its platform.
In April 2015, StreetShares earned the Best Investment award at the global Harvard Business School New Venture Competition. The company’s mission was to offer fintech alternatives to costly payday loans for veterans, earning it the description “Shark Tank meets eBay” by the Washington Business Journal.
The Greater Washington Innovation Awards recognized StreetShares as Professional Services Innovator of the Year in 2017. In January 2018, it raised $23 million in equity financing led by Rotunda Capital Partners. Later that year, founders Mark L. Rockefeller and Mickey Konson received Ernst & Young Entrepreneur of the Year honors in June 2018.
In January 2019, StreetShares launched a financing product tailored for veteran-owned government contractors impacted by federal shutdowns. By June 2019, it unveiled the StreetShares Platform, designed to empower community banks and credit unions to extend loans to small businesses using advanced Banking as a service software technology that was featured by Forbes.
Business model
StreetShares offers a white-label platform that enables banks and credit unions to provide business loans with terms ranging from 3 to 36 months. Eligible applicants must be U.S. citizens or permanent residents who have operated their business for at least one year, generate revenue, are incorporated or structured as LLCs, and have a business guarantor. The company charges a one-time origination fee determined by loan duration, risk profile, and amount borrowed. Financial institutions pay a subscription fee for access to the technology. Loan capital may be supplied either from StreetShares’ own funds or directly by partner banks and credit unions. This hybrid funding approach allows non-financial entities to also leverage the platform’s technology. Investments are accessible to qualified investors through established StreetShares accounts.
Reception
StreetAuthority praised StreetShares’ auction-based lending model as an innovative method for reducing costs and identified it as a potential significant rival to alternative lender OnDeck. Entrepreneur Magazine acknowledges StreetShares as a prominent financing source for veteran-owned small businesses.
Board of Advisors
- Raj Date, Fenway Summer
- George W. Casey, Jr., former Chief of Staff of the U.S. Army
- Pete Hartigan, Trusted Ventures, LLC
- Troy A. Paredes, ex-Commissioner of the U.S. Securities and Exchange Commission