Salaryo raises $5.8 million to provide COVID-19 financing relief for SMEs
Total amount raised reaches $12 million; the fintech startup has processed over $60 million in loan applications year-to-date and plans to launch additional small business banking products in 2021
NEW YORK, Sept. 8, 2020 /PRNewswire/ -- Salaryo, a pioneering fintech platform for U.S. freelancers and startups, today announced it has raised a total of $5.8 million in funding from Variant Investments, Dubai-based private equity fund KEN Investments, Techstars Ventures and Michael Ullmann's investment group, bringing its total funding to $12 million. The majority of the round was funded earlier this year and the company will use the funds to propel the growth of its small business lending activity and to launch new business banking products in 2021.
Salaryo provides fully-digital business term loans and lines of credit for small businesses. The company has successfully provided financing to hundreds of entrepreneurs and freelancers since its foundation in 2017. During the COVID-19 pandemic, the company accelerated its growth by offering cash flow relief to small businesses in selected business categories, processing over $60 million in loan applications year to date.
"This investment round propels Salaryo's evolution from a niche player into a fintech banking partner for small businesses, at a time that small business owners need us the most," said Yair Levy, CEO and co-founder of Salaryo. "This year we have expanded our offering with business term loans, providing cash flow flexibility and relief during COVID-19. Our next big step in the materialization of our vision to be the Bank of the Future of Work is planned for next year, when we launch a suite of digital banking products that are designed for cash flow volatility and income uncertainty."
Salaryo's lending technology features a fully automated experience, featuring KYC (Know Your Client), financial and professional analysis, payment processing and e-signatures, to make a decision in minutes. Once approved, Salaryo sends funds to the business within 24 hours.
"COVID-19 has accelerated the digitization of financial services. Fintech companies such as Salaryo provide opportunities to generate alternative return streams in a dynamic environment," said Curt Fintel, Principal at Variant Investments. "Salaryo's team possesses the financial acumen and advanced technology that give Variant an edge in getting exposure to unconventional income-generating assets in the specialty finance category."
The COVID-19 pandemic has had a negative effect on the small business sector, with public health regulations causing the temporary closure and steep reduction of activity for millions of small businesses across the U.S. and worldwide. Since early March 2020, Salaryo has processed over $60 million in loan applications using its platform, offering relief to hundreds of U.S small business owners.
About Salaryo
Salaryo is a fintech startup that helps small businesses grow and reach financial stability, by offering flexible and affordable financing and digital banking products. Since launching its offering in 2018 in New York City, the company has financed hundreds of entrepreneurs, freelancers and small business owners in the United States. Headquartered in New York City with an R&D center in Tel Aviv, Salaryo graduated from the Barclays Techstars FinTech accelerator in 2017.
About Variant Investments
Variant an innovator in alternative income investing, is led by an investment team with decades of experience investing in market niches. Variant is well traveled in providing unique financing solutions across complex market opportunities.
About KEN Investments
KEN Investments is a private equity and venture capital fund that has been supporting entrepreneurs and Startups for more than 15 Years. With offices in Germany, Dubai, Japan, Taiwan the fund invests into Startups in Europe and Asia in multiple business fields and focuses primarily on fast-growing, digitally enabled B2B and B2C companies in Fintech, Insurtech, Pharma, E-commerce, Consumer goods. Its present portfolio includes more than 20 startups after several successful exits.
About Techstars
Techstars is a worldwide network that helps entrepreneurs succeed. Techstars enables founders to connect with entrepreneurs, experts, mentors, alumni, investors, community leaders, and corporations to grow their companies. Techstars accelerator alumni including Classpass, DataRobot, DigitalOcean, Outreach, Pillpack, Remitly, SalesLoft, SendGrid, and Zipline have a current market cap of more than $22 billion. Techstars was founded in 2006 by Co-CEOs David Cohen and David Brown, tech entrepreneur and venture capitalist Brad Feld, and the current Governor of Colorado, Jared Polis. Techstars is Headquartered in Boulder, Colorado and employs more than 280 people across 20 countries.
About Michael Ullmann
Michael Ullmann is a serial entrepreneur and venture capital investor. He has invested in and been a stakeholder in more than 50 companies. He was the founding Chairman of Prodigy Finance for over 10 years, a fintech platform which focuses on financing international MBA students. Michael was formerly an affiliate professor at INSEAD for many years where he helped develop the entrepreneurship department into one of the most vital and popular departments in the school.
Media Contact:
Lisette Paras
Gravitate PR
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SOURCE Salaryo
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