On Deck Capital, a US-based small business loans company, has raised $17m in its extended series D round from corporate venturing unit Google Ventures, secondaries investment firm Industry Ventures and angel investor Peter Thiel, who had co-founded what is now EBay’s PayPal financial payments subsidiary.
In February, On Deck raised $42m in its D round, to take its then-total since launch to $80m, from a consortium including SAP Ventures, the corporate venturing unit of the eponymous Germany-based software provider. Venture capital firm Institutional Venture Partners led the D round as a new investor, and was joined by VC peers RRE Ventures and First Round Capital as well as SAP Ventures.
Karim Faris, general partner at Google Ventures, said: “On Deck has found an efficient way to connect millions of small businesses around the country with the working capital they need to grow their companies.”
On Deck said it had now deployed more than $450m to thousands of small and medium sized businesses. Noah Breslow, chief executive of On Deck, said: “Our goal is to power every US small business loan, making capital on demand a reality for this important sector of our economy, and we are steadily on our way to achieving that.”
Victory Park Securities acted as financial adviser to On Deck on the initial D round.
In August, On Deck Capital raised $97m of debt after extending its $15m series C equity round by $4m a year earlier.
US-based investment firm SF Capital Group provided the $4m C round extension and, along with Lighthouse Capital Partners, has provided $17m in venture debt to On Deck.
The other $80m is a credit facility jointly led by investment bank Goldman Sachs and hedge fund Fortress Credit Corporation.
On Deck said it had more than $100m of loan volume in the past 10 months and said its own debt raising would help it increase lending capacity.
Launched in 2006, One Deck provides loans to small businesses, using data aggregation to evaluate their overall business performance, and investing accordingly.
On Deck’s initial close of its C round in January last year was led by SAP Ventures, the corporate venturing unit of Germany-based software conglomerate SAP.
Other backers of On Deck are VC firms Contour Ventures, Khosla Ventures and Village Ventures, all of whom had participated in On Deck’s series A and B rounds. The company had raised $38m venture funding before the D round, a spokesman said.