Dealstruck, Inc., a San Diego private provider of funding for small- and medium-sized businesses from individual and institutional accredited investors, said it closed a $1.2 million seed-stage investment round from a group of Southern California-based angel investors.
The company said the funding will enable it to enhance its online platform, build out its underwriting team, offer additional products, and streamline the company’s technology.
CEO Ethan Senturia started the company last year after seeing small businesses struggle to obtain financing through traditional lenders, and having to resort to higher cost alternative solutions.
While the costs on loans ranging from $50,000 to $250,000 are higher than what a qualified borrower could secure at a traditional lender, they’re well below the rates charged by fast-cash sources, Senturia said.
The company said it is the first crowd lending platform to offer multiple loan products and the first to allow investors to select specific investments.
In addition to the funding announcement, Dealstruck named Rudy Navarro as its vice president of operations. Previously, Navarro was executive vice president at Capital Partners, the largest factoring company in the nation, the company said.