Kabbage
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Kabbage, Inc. is an Atlanta, GA, based, online financing corporation that provides working capital to online merchants who list products for sale through online marketplaces such as eBay and Amazon, as well as those that operate independent sites. Rob Frohwein conceived of the concept for Kabbage and, together with Marc Gorlin and Kathryn Petralia, founded Kabbage in 2008.[1]
Kabbage advances are based on a number of factors, including, but not limited to, a seller’s rating, time in business, transaction volume, and the seller’s credit score. In addition, customers provide Kabbage with access to additional information that help it further refine its risk model and enable its customers to obtain access to additional funds. Single advances range between $400 and $20,000, based on these factors. Its customers typically utilize the funds for inventory purchases, upgrading systems and marketing.[2]
Currently, Kabbage advances are only available to merchants who sell on eBay and Amazon, but will be available to sellers on marketplaces such as Yahoo, Etsy, and Bonanza, in the near future.
As of its last round of investing, Kabbage has raised just under $9 Million from a number of accredited investors including BlueRun Ventures, David Bonderman, Founder of TPG Capital, Warren Stephens, CEO of Stephens, Inc., and the UPS Strategic Enterprise Fund.[3][4][5][6] Kabbage has grown to service forty-eight states since credit lines opened in June of 2010 with a full release in October 2010.[7]
References
- ^ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=84548776
- ^ http://technorati.com/business/small-business/article/small-business-plan-with-kabbage-funding/
- ^ http://www.brv.com/
- ^ http://www.tpg.com/
- ^ http://www.stephens.com/
- ^ http://www.ups.com/sef/
- ^ http://techcrunch.com/2011/01/12/kabbage-raises-6-7m-to-give-online-merchants-working-capital-to-grow-their-busineses/