TLDR:
- Fundabl, a business lending fintech, raised $3.2 million in an equity round to increase its venture debt business.
- They offer three types of business finance: bridging loans, growth capital, and venture debt.
A business lending fintech startup, Fundabl, raised $3.2 million in an equity round to expand its venture debt business as an alternative capital option for startups. Founded in 2021 by Ethan Singer and David Salkinder, Fundabl offers bridging loans, growth capital, and venture debt, with a focus on the $500,000 to $5 million range.
The new funding comes from family offices and strategic investors, including existing investor Matt Leibowitz, founder of Stake. Fundabl aims to use the funds to grow its portfolio and product range, expand offshore to countries like New Zealand, and enhance its team and marketing capabilities. The fintech has also expanded its warehouse facility through local institutional investors.
Fundabl’s clients include startups such as Lyka, T-Shirt Ventures, Safewill, Tank Stream Labs, Nudge Group, and Amber Electric. The founders see an opportunity for Fundabl to complement equity investment, especially as venture capital funding has slowed post-pandemic. This venture debt option allows founders to preserve equity while still accessing necessary capital for growth.
General Manager Nathan Ryba emphasizes the fintech’s focus on meeting the demand for businesses, particularly scaleups, in the $500,000 to $5 million range, which often face challenges in raising capital on favorable terms. Fundabl aims to provide founders with flexible capital options to achieve their growth ambitions, minimizing equity dilution. While venture debt remains an emerging option in Australia, Fundabl sees itself as a driving force for entrepreneurs to own more of their company while still accessing the capital needed for growth.
