FintekNews Deal of the Day – MPower Financing Raises $6M

Student loans – one of the more vexing problems of our time, and a topic of great concern to millennials and of political debate during the currently 2016 US presidential campaign. 

We all want our kids to be able to get a great education, which should open the doorway to better careers and life long wage-earning, but they can be saddled with student debt for decades in some cases.  What to do? 

One new Washington DC-based fintech, MPower Finance, has launched a “a peer-to-peer lending platform linking inter­national and underserved college students with affordable student loans,” according to their Crunchbase listing. 

According to their website, the loans can be used for tuition or university-sponsored housing, meal plans or health insurance, and can range from $2,000-$25,000.  Private and institutional investors can then invest in the loans.  They are offered to over 180 nationalities (including Americans), they do not require a co-signer, and they require only small “touch payments” until graduation. 

We do not know their business model, but to date, they have raised investments (both Seed & Series A) from 8 investors, so the VC community has vetted thier business plan and sees it as credible and investment-worthy.  We sincerely hope this proves to be a viable enterprise.

Total Equity Funding
$10M in 2 Rounds from 8 Investors

Most Recent Funding
$6M Series A on October 26, 2016

Read Full Listing at Crunchbase