Nova Credit is one of the leading fintechs today in the area of helping immigrants get access to credit in the United States. Today they announced a $50 million Series B equity round which was led by Kleiner Perkins. Canapi Ventures, Index Ventures, General Catalyst, Nyca Partners and Sound Ventures also participated. Sound Ventures is a fund which was founded by actor Ashton Kutcher and American talent manager Guy Oseary. The press release noted that there was also support from former Major League Baseball player Alex Rodriguez and U2 guitarist the Edge. Sound Ventures has been active in fintech before having previously participated in a funding round for point of sale finance company Affirm.
Access to credit is a large problem in the US, particularly with immigrants that account for 55% of US population growth. It is expected that this will grow to 80% by 2040. Nova Credit has developed ground breaking technology and international partnerships that enable it to help immigrants from 11 countries share their credit history in the US. Nova collects data in these countries and then compiles it in a way that is familiar to US financial institutions so they can make a credit decision instantly.
Last October Nova Credit announced a partnership with American Express, the first large financial institution to use their technology. Today, immigrants from several countries can apply for an American Express card in the US and give Amex permission to use their foreign credit history in the decision making process. This has resulted in many people being able to obtain an American Express card who would have been denied in the past.
We have been tracking Nova Credit’s success for several years now. Back in 2017, Nova Credit won our PitchIt @ LendIt competition at LendIt Fintech USA. It is amazing to see how far they have come in just three years. If you’re a startup looking for exposure we are currently accepting applications to our upcoming competition taking place on May 13th and 14th at LendIt Fintech USA 2020. Applications close on April 10 and finalists will be announced on April 20. Finalists will pitch in front of notable VC investors on May 14 where we will announce the winner.