Upstart has just announced that it has successfully raised $50 million in funding. Following this, the leading artificial intelligence (AI) platform is slated to build more partnerships with banking institutions to further their AI technology.
According to PR Newswire, Upstart has recently received joint funding of $50 million worth of investments from its existing pool of investors. These include First National Bank of Omaha, Healthcare of Ontario Pension Plan, and the Progressive Investment Company, Inc. The total amount of funding the company was able to raise in seven years comes up to $160 million, reports Venture Beat. The startup company was able to get notable businesses to invest, with Google Ventures, Khosla Ventures, and other renowned CEOs under their helm.
PR Newswire states that in the last five years, the company has shown that it has a clear grasp of the lending rates and FICO scores observed by the market. To date, Upstart has loss rates amounting to less than half of its peer platforms, despite the $3.3 billion loans undertaken by the business.
Following this news, the company was reportedly successful in growing its revenues in 2018, with about 80 per cent growth being achieved by Upstart. In 2019, the business improved its offerings and services, with originations in automation and approval time amounting to more than 60 per cent in originations.
Apart from getting funding, the business has also solidified its partnerships with Customers Bank under its BankMobile division. This means that Customers bank will be using Upstart and its artificial intelligence technology as a technology lending platform.
According to Venture Beat, other similar banks – including Accion Chicago, First Federal Bank of Kansas, and National Bank of Omaha – will be partnering with the business under similar agreements.