Blackmoon Financial Group, the technological marketplace that enables institutional investors to directly invest in loans issued by balance sheet lenders, has secured $2.5 million in an equity funding round that includes Target Global, A&NN Group, Flint Capital, and several private investors. The valuation of the company and the structure of the investment are not disclosed.
Blackmoon will use the funds for the further development of its technological platform and front-end solutions, and for further expanding its presence in the U.S. market, which will be a key growth area in the next year and a half. Currently, Blackmoon works with lending institutions in the United States, Russia, Finland, Latvia, Estonia, Poland, the Czech Republic, Slovakia and Georgia.
“Blackmoon enables institutional investors to directly invest in newly originated loans issued by balance-sheet lenders in a scalable and a transparent way. We estimate the global market for this hybrid service is in the hundreds of billions of dollars,” Oleg Seydak, founder and CEO of Blackmoon, said. “Lending is one of the universal structures of the modern financial system. And unlike other players, we’re not trying to replace banks; we want to give them and other balance-sheet lenders a unique tool to improve efficiency and risk management. We are happy to have such experienced, knowledgeable investors on board to help us continue moving towards that goal and developing the company.”
Blackmoon makes money by charging investors for getting access to the unique supply of loans that can not be found on other platforms. According to its own data, monthly transaction volume has grown by a multiple of 2.5 since June 2016 and exceeded $5 million in September 2016.
“We see a great potential in the business model Blackmoon has chosen,” Mikhail Lobanov, a partner at Target Global, added. “The proposed solution can freely scale both geographically and through the product segments, providing new opportunities for lending institutions and owners of capital. Being familiar with alternative lending through our investments in leading P2P platforms, we see Blackmoon as a perfect solution for balance sheet lenders who are willing to expand their offering and diversify funding.”
Looking forward, the company plans to provide marketplace solution for banks in early 2017 and apply for a broker/dealer license in U.S. in the second half of 2017.
“Flint Capital became the first institutional investor in Blackmoon in August 2015. In our opinion, Blackmoon has the exclusive capacity in a growing market niche, which is why we further increased our share in the company this round,” Dmitry Smirnov, the managing partner of Flint Capital, added.
About Blackmoon
Blackmoon Financial Group is a technological marketplace that enables institutional investors to directly invest in loans issued by balance sheet lenders. Acting as a next generation technology oriented securitization agent in alternative lending space, Blackmoon facilitates real-time access to asset managers for loans originated by balance sheet lenders. Blackmoon was founded in 2015 by Oleg Seydak and Ilya Perekopsky and has since developed sophisticated technologies that provide deep online integration with loan originators, as well as unmatched loan screening, scoring and pricing modules. Developing rapidly, Blackmoon is the market leader in providing access to alternative credit for asset managers. For more information, visit www.blackmoonfg.com.
About A&NN Group
A&NN Group, one of the largest private investment funds in Russia with $ 2.4 billion under management. The portfolio of A&NN Group includes diversified investments to the Russian and international leading companies and direct investments to the companies of the fastest growing industries with high potential. Currently the fund’s companies include the following industries: internet, tech, logistics, gold mining, development of warehouse and suburban real estate. For more information, please visit www.ann.ru
About Target Global
Target Global, a multinational Venture Capital firm with over $300m under management and offices in San Francisco, Berlin, Moscow and Tel-Aviv. Target Global focuses primarily on fast-growing digital-enabled B2C and B2 SMB companies in Fintech, Marketplaces and Software. Target Global previously invested in P2P lenders like Prosper and Realty Mogul. For more information, please visit www.targetglobal.vc.
About Flint Capital
Flint Capital is a $100 million international investment fund with offices in the USA (Boston and Palo Alto), Israel and Europe. It was founded in 2013 to support the best entrepreneurs, wherever they are. Flint is a multi-stage venture fund, which focuses on investments in mobile, SaaS, Advertisement, Financial as well as Security and Enterprise sectors of high technology. For more information, please visit www.flintcap.com.
