Parafin Secures $125 Million Warehouse Facility from Silicon Valley Bank and Trinity Capital Inc.

News provided by

Apr 09, 2024, 08:00 ET

Financing provided by SVB's National Fintech Practice and Trinity Capital Inc. (Nasdaq: TRIN)

SAN FRANCISCO, April 9, 2024 /PRNewswire/ -- Silicon Valley Bank (SVB), a division of First Citizens Bank, along with lending partner Trinity Capital Inc. ("Trinity"), today announced that it has provided a $125 million warehouse facility to fintech infrastructure startup, Parafin. Recently named to the 2024 Fintech Innovation 50, Parafin helps companies, such as marketplaces, vertical SaaS, and payment processors, launch and embed financial services for their sellers.

Provided by SVB's national fintech practice, the financing facility will support Parafin in providing capital to businesses on premier platforms such as DoorDash and Amazon. Parafin employs a machine learning-based underwriting model based on sales performance to determine eligibility and create personalized financing offers. Since Parafin's launch in 2020, it has served tens of thousands of businesses and extended $5 billion in offers.

Sahill Poddar, CEO of Parafin, shared that "Small businesses often face barriers to financing. Parafin's goal is to help them overcome those challenges, and get them the capital they need. We're thrilled to partner with SVB and Trinity, which will expand our financial service offerings and capacity to supply sellers with fast and flexible financing to scale their businesses."

"Parafin is helping sellers, creators, and entrepreneurs bridge their cash flow needs, invest in their growth, and focus on what they do best: running their business," said Brian Foley, Market Manager for SVB's Warehouse and Fintech group. "SVB is proud to continue our strong relationship with Parafin and provide them with the financial solutions and advice they need to grow and help more business owners."

"We're proud to partner with the teams at Parafin and SVB to provide this warehouse financing facility," said Steven Lambe, Managing Director, Warehouse Lending at Trinity Capital. "Parafin's impressive financing platform will continue to empower small and medium sized businesses with flexible capital solutions."

As a leader in serving the fintech industry, SVB provides fintech clients with specialized banking services, specialty financing and payment solutions including venture debt, warehouse lending, payment processing, and APIs.

About Silicon Valley Bank 
Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com

About Trinity Capital Inc.
Trinity Capital Inc. (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans and equipment financings and equity-related investments. Trinity Capital believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience and track record in lending to growth stage companies. For more information, please visit the Company's website at www.trinitycap.com.

About Parafin
Parafin is a full-stack embedded financial services company. Parafin enables platforms to provide financing to businesses by abstracting away the complexity of capital markets, underwriting, originations, servicing, compliance, and customer support. In less than 3 years, Parafin has partnered with Amazon, DoorDash, and more platforms to serve tens of thousands of businesses and extended $5 billion in offers. By powering the financial services of marketplaces and payment processors, sellers are able to manage and scale their businesses in evolving economic conditions. Parafin was founded in 2020 by Sahill Poddar, Ralph Furman, and Vineet Goel and is backed by Ribbit Capital, Thrive Capital, and GIC.

SOURCE Silicon Valley Bank