Kabbage, a US-based lender to online businesses, has raised $17m from investors including a corporate venturing fund of US-based logistics company UPS and David Bonderman, a founder of US-based buyout firm TPG Capital.
The UPS Strategic Enterprise Fund was also joined by venture capital firms Mohr Davidow Ventures, which led the round, and BlueRun Ventures, which span out of Finland-based phone maker Nokia in 2005 but retains its former parent as a limited partner in its funds; and angel investors including Warren Stephens, chief executive (CEO) of his eponymous firm, and Jim McKelvey, co-founder of Square, a mobile phone payment company.
In January, Kabbage raised a $6.7m series A round from BlueRun, Bonderman, Stephens and the UPS Strategic Enterprise Fund.
In April last year, the company raised $2m in funding, according to a Securities and Exchange Commission filing. In March 2010 it raised $1.4m in debt, and in January 2010 it raised $1.3m in debt, according to two other SEC filings. This suggests the company has raised $28.4m in equity and in debt.Kabbage was founded in late 2008.
Japan-based game developer Intelligent Systems, Tom Noonan, co-founder of Internet Security Systems, Bruce Hack, former CEO of Vivendi Games, and Henry Mellon were early backers of the company, news provider Atlanta Business Chronicle said.
Joe Guerrisi, vice-president of corporate marketing at UPS, said: "There is a rapidly growing delta between small-to-medium businesses’ need for working capital and its availability from traditional sources. The knowledge gained from working with companies like Kabbage helps UPS refine its strategy of enabling global commerce."