On Deck Capital has raised $42 million in series D financing, led by Institutional Venture Partners. According to TechCrunch, the finance startup has also added seasoned financier Sandy Miller of IVC to the board — leading many to believe the company is approaching an IPO.
On Deck was founded by Noah Breslow, a Harvard Business School graduate, with the goal of simplifying and facilitating short-terms for small businesses — or ‘Main Street,’ as Breslow so fairly terms his clients.
Thus far, On Deck has deployed $400 million in loans to small businesses, and saw a whopping 1,233% revenue growth from 2008 – 2011. Breslow recently told TheStreet.com that “it’s becoming increasingly convincing that [On Deck] can be a publicly scaled company,” although he inferred there was stil a ways to go before IPO-territory.
On Deck is not alone in the business of loans for small business owners. Most notably, Capital Access Network, founded in 1998, secured $295 million in credit lines in Goldman Sachs and Morgan Stanley in September 2012. Compare that to the $100 million in ‘credit facility commitments’ On Deck raised from Goldman and Fortress Investment Group in 2012, and it’s clear the firm is not top of the ‘Main Street loan’ heap yet.
The firm also recently turned down a $250 acquisition offer from Europe-based Wonga, so the team clearly has a vision. We look forward to seeing how On Deck plays its next few cards.