CommonBond Raises $50 Million for Technology Investment
CommonBond recently announced that they raised $50 million in investments to pursue technological advancements.
Financial technology company CommonBond has raised $50 million and plans to use this funding to advance its growth and pursue additional investments in technology, such as blockchain to heighten the security of its clients’ information. CommonBond is an online lender that provides financing and refinancing options for students. The Series D financing effort was led by Fifth Third Capital Holdings, LLC, and other participants included First Republic Bank and Columbia Seligman Investments.
Prior investors have included August Capital, Neuberger Berman, and Nyca Partners, as well as individual investors Vikram Pandit, former CEO of Citigroup, and Tom Glocer, former CEO of Thomson Reuters. Including this latest round, CommonBond has raised a total of more than $130 million. This is its first financing round since 2016 and the largest funding round in its history.
What This Fundraising Effort Means for CommonBond
“This round of equity powers our expansion as a leader in fintech, enabling more ways for us to improve the financial health of our members,” David Klein, CEO and co-founder of CommonBond, said in a press release.
It’s no secret that CommonBond’s main focus is to serve its customers by utilizing top of the line technology.
CommonBond has focused on great customer service, discipline, and technology to position itself as a leading fintech in the education world, according to Klein. Earlier this year, CommonBond was named as the most innovative company in education by Fast Company. It also earned Fast Company’s nod on a list of the World’s 50 Most Innovative Companies.
Fifth Third opted to lead CommonBond’s financing round partially because it recognizes that student loan debt is a huge issue for millennials and wants to help them tackle that challenge.
“CommonBond has built an industry-leading digital proposition that delivers a memorable experience and helps its members save thousands on their student loans so they can finance their dreams,” Tim Spence, Fifth Third Bank’s head of payments, strategy, and digital solutions, said in a press release.
More About CommonBond
CommonBond helps students finance their education no matter what phase they are in. They work with new students who are looking for private student loans.
They also offer student loan refinancing options for graduated students who are looking for a more competitive interest rate. Right now, CommonBond's refinance loan offers rates as low as 2.54% for variable-rate loans and 3.14% for fixed-rate loans.
So far, more than $1.5 billion in student loans have been funded through CommonBond.
CommonBond also has a platform called CommonBond for Business which focuses on student loan benefits for employees – more specifically, it lets employers kick in on paying off their employees’ student loans. More than 200 partners have signed up for that program so far.
The company also focuses on its charitable work. It has given more than $800,000 to its nonprofit partner, Pencils of Promise, in order to help ensure children can obtain the educations they need.
CommonBond had a successful 2017 and it appears to be poised for more growth in 2018. Last year, the company had a 250 percent growth in year-over-year revenue, beating its income projections.
It also recently closed an AAA-rated securitization – the first for the company.