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Prospa has secured $20 million of funding from a Silicon Valley lender, in what the fintech argues is a reflection of the growing need for alternative financing options.
The line of funding from Partners for Growth (PFG), a lender which caters specifically to “fast growing technology companies”, follows a $25 million equity round in March 2017 by AirTree and Square Peg.
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According to Prospa, the investment reflects “a wider trend of fast-growth companies in Australia needing to raise capital in increasingly smart ways”.
The SME lender added that traditional banks have “historically” been reticent to lend to companies like Prospa.
“The need for so-called 'alternative' financing is irrefutable: it is the only way that many Australian businesses can access the funds necessary to fuel their growth,” the fintech said.
Ed Bigazzi, chief financial officer at Prospa, added: “Like our small business customers, Prospa requires funding to grow. PFG plays an important role in the market by filling the gap left by the traditional banking industry.
“They share many of our philosophies about how to build long-term competitive advantages and long-term stakeholder value.”
The funding round represents the latest move the online lender has made into securing alternative finance, after becoming the first and only small business lender in Australia to develop a securitisation warehouse structure in 2015.
[Related: SME lender becomes first fintech to win Telstra award]
