Backed is a new marketplace lending platform that launched in September 2015. Although there are many other young companies in the industry, we were intrigued by Backed’s approach to underwriting a niche demographic. They recently closed a seed round totaling $1.5 million from iAngels and Cyhawk Ventures. We had the chance to talk to George Popescu, CEO of Backed and Gilad Woltsovitch, Co-CEO and Head of Product at Backed to learn more about their product offering.
Backed hopes to serve millennials, which typically have a thin credit file and lack access to affordable credit. Gilad and George mentioned that in general someone under the age of thirty is not less reliable or more risky than someone over thirty. Over 63% of millennials don’t have a major credit card and 26% of young adults still live at home which makes it hard to underwrite an individual alone. This is where being ‘Backed’ comes in, which is the term they have coined. This is similar to having a co-signer on a loan, but there are some distinct differences. [Read more…]