If investors continue to funnel money into online lending companies at their current pace, 2014 may be the year that startup lenders finally break the bank — or at least banking’s hold on the lending market.
The imminent public offerings of LendingClub and OnDeck Capital show that markets have embraced the non-bank lending business, and private investors have taken notice pouring over $1 billion into startups in the past year alone, according to CrunchBase data.
Including yesterday’s whopping $225 million equity investment in AvantCredit, led by Tiger Global, U.S.-based startup lending businesses have raised over $1 billion in the past five years, according to CrunchBase data.
Only two years old, AvantCredit has already built up a significant war chest with over $1 billion in equity and debt financing.
In addition to the $225 million equity investment it raised from previous investors Tiger Global and August Capital and new investors including PayPal…
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