Viola Credit closes $700 million fund to provide asset-based lending to fintech startups – TechCrunch

Fintech startup and alternative credit asset manager Viola Credit has closed its latest $700 million fund, which provides asset-based lending capital to fintech, proptech and insurtech startups.

If this fintech game reminds you of Silicon Valley Bank, think again. The latter provides business loans, also called risk loans. Instead, Viola provides loan capital to fintech lenders. So, for example, for a company like Affirm, which provides installment plans to consumers, Viola Credit provides the loan capital to provide those claims. Another example is Market Finance, an SME technology lender in the UK, which needs loan capital to fund loans.

As Ido Vigdor, General Partner at Viola Credit, puts it: “There is a disruption in financial services. They are VC-backed tech companies, but they also need financial partners because of their capital-intensive business to do this. We are at the intersection providing loan capital solutions to these new technology based financial solutions. »

The fintech sector exploded in 2021, with global fintech funding reaching a record $132 billion.

The massive digital transformation underway right now has given rise to non-bank and alternative lending companies. In 2021, fintech lenders issued over $120 billion in loans.

Viola Credit will partner with fintech platforms in the US, Western Europe, UK, Australia and New Zealand.

Viola’s competitors are Victory Park Capital, Atalaya Capital and Pollen Street Capital in the UK

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