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OnDeck Capital

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OnDeck Capital, Inc.
Company typeSubsidiary
NYSE: ENVA
IndustryFinance
GenreFinancial Technology
Founded2006; 18 years ago (2006)
FounderMitch Jacobs
Headquarters
Chicago, Illinois, U.S.
Key people
  • David Fisher (CEO)
ProductsSmall Business Loans, including Term Loans and Lines of Credit
Revenue$291.3 million (2016)
ParentEnova International www.enova.com
Websitewww.ondeck.com

OnDeck Capital is an online small business lending company[1] in the United States. It has offices in Chicago, IL; New York, NY; Denver, CO, and South Jordan, UT.

History

Entrepreneur Mitch Jacobs[2] founded OnDeck in 2006 and headquartered the company in New York City.[3] Jacobs sought funding from VCs companies, with early investors including First Round Capital, Khosla Ventures, Village Ventures, Contour Venture Partners, RRE Ventures, SAP Ventures (now Sapphire Ventures), Google Ventures and Tiger Global Management.[4][5][6][7][8]

OnDeck uses proprietary software to aggregate data about a business’ operations, which is processed by an algorithm that determines loan eligibility.[9][10] In 2007, the company introduced its short-term loan product and made its first loan, and by early 2010, the company had made over $50M in loans to small businesses in the U.S.[11]

Jacobs left OnDeck in 2012, and Noah Breslow became the CEO. OnDeck completed its IPO in December 2014 and became listed on the New York Stock Exchange under the symbol ONDK, raising $230 million in the offering.[12] In 2015, the company expanded its operations into Canada and Australia,[13] the latter operating as OnDeck Capital Australia Pty Ltd in partnership with MYOB.[14][15]

In July 2020, OnDeck was acquired by Chicago consumer lender Enova International.[16]

Partnerships

In June 2016, JPMorgan Chase made a deal with OnDeck to offer an online lending process to its small business customers.[17] The bank uses OnDeck’s origination and loan servicing technology to supply small businesses with same or next-day funding.[18][19] JPMorgan Chase and OnDeck announced an extension of their collaboration in August 2017.[20] The JPMorgan Chase partnership ended in July 2019.[21]

OnDeck’s referral partners include Intuit QuickBooks, Angie’s List, Prosper Marketplace, Credit Karma, Wave Accounting, and WEX Inc.[22][23][24][25][26][27]

OnDeck is a founding member of the Innovative Lending Platform Association (ILPA), a trade organization representing online lending and service companies that serve small businesses.[28] In 2016, the ILPA, in partnership with the Association for Enterprise Opportunity, launched The SMART Box, a “model small business pricing disclosure...focused on empowering small businesses to better assess and compare finance options.”[29]

OnDeck also partners with SCORE, an American non-profit that provides small businesses with free advice and mentors.[30]

Criticisms

OnDeck Capital has been criticised for its high interest rates. In 2015, its average loan had an annual 51% interest rate.[31] In 2014, Bloomberg BusinessWeek called OnDeck "payday lending for businesses", relying on brokers who were "less-than-scrupulous."[32]

Awards

  • Crain’s New York Business Fast 50, 2013, 2014, 2015, 2016[33][34][35][36]
  • Forbes’ America’s Most Promising Companies, 2014[37]

References

  1. ^ "OnDeck Capital". www.prnewswire.com (Press release). Retrieved 9 November 2018.
  2. ^ "Contour Venture Partners". www.contourventures.com. Retrieved 2017-09-16.
  3. ^ Slade, Hollie. "Small Business Algorithm Lender, OnDeck Raises $77M". Forbes. Retrieved 2017-09-16.
  4. ^ "Working Capital (Debt) Financing For Entrepreneurs: Mitch Jacobs, Founder And CEO, On Deck Capital (Part 1) | Sramana Mitra". Sramana Mitra. 2010-06-28. Retrieved 2017-09-16.
  5. ^ "OnDeck". RRE Ventures. Retrieved 2017-09-16.
  6. ^ Empson, Rip. "On Deck Adds $17M From Google Ventures And Peter Thiel To Help Small Businesses Connect With Capital". TechCrunch. Retrieved 2017-09-16.
  7. ^ "On Deck Capital Has Received Series C Funding from SAP Ventures: Signal Hill". www.signalhill.com. Retrieved 2017-09-16.
  8. ^ Chapman, Lizette (2014-03-06). "OnDeck Capital Raises $77M Led by Tiger Global to Expand Small Business Lending". WSJ. Retrieved 2017-09-16.
  9. ^ "The State of Small Business Lending: Credit Access during the Recovery and How Technology May Change the Game" (PDF).
  10. ^ "OnDeck Capital Inc. - Filings & Reports - SEC Filings - SEC Filings Details". investors.ondeck.com. Retrieved 2017-09-16.
  11. ^ "An innovative alternative to bank credit". 11 February 2013.
  12. ^ "Form 10-K". www.sec.gov. Retrieved 2017-09-16.
  13. ^ "OnDeck Australia Review". Small Business Loans Australia. Retrieved 2017-12-29.
  14. ^ "Online loans for small business: New lenders set to transform financial services". CBC News. Retrieved 2017-09-16.
  15. ^ "US online business lender OnDeck to set up in Australia". The Sydney Morning Herald.
  16. ^ Fuscaldo, Donna. "Struggling Online Lender OnDeck Sold To Enova International". Forbes. Retrieved 2022-07-12.
  17. ^ Simon, Peter Rudegeair, Emily Glazer and Ruth. "Inside J.P. Morgan's Deal With On Deck Capital". WSJ. Retrieved 2017-09-16.{{cite news}}: CS1 maint: multiple names: authors list (link)
  18. ^ "An In Depth Look at the OnDeck/JPMorgan Chase Deal - Lend Academy". Lend Academy. 2015-12-04. Retrieved 2017-09-16.
  19. ^ Feldman, Amy. "Why JPMorgan Chase And On Deck Capital Are Teaming Up To Offer Small Business Loans". Forbes. Retrieved 2017-09-16.
  20. ^ "JPMorgan Chase OnDeck Extend Digital Banking Lending Partnership for SMBs".
  21. ^ "JPMorgan Chase ends business loan partnership with OnDeck".
  22. ^ "Intuit and OnDeck to Launch $100M Small Business Lending Fund". investors.intuit.com. Retrieved 2017-09-16.
  23. ^ "Angie's List Teams with OnDeck (:ANGI)". investor.angieslist.com. Retrieved 2017-09-16.
  24. ^ Inc., On Deck Capital. "Prosper Marketplace And OnDeck Announce Strategic Partnership". www.prnewswire.com (Press release). Retrieved 2017-09-16. {{cite press release}}: |last= has generic name (help)
  25. ^ "Small Business Loans | Credit Karma". www.creditkarma.com. Retrieved 2017-09-16.
  26. ^ Wave. "Small Business Loan and Line of Credit from Wave". Wave. Retrieved 2017-09-16.
  27. ^ "WEX and OnDeck for Better Small Business Financing". Corporate Payments Insights. 2017-01-25. Retrieved 2017-09-16.
  28. ^ "Innovative Lending Platform Association". ILPA. Retrieved 2017-09-16.
  29. ^ "SMART Box - ILPA". ILPA. Retrieved 2017-09-16.
  30. ^ "OnDeck Business Loans | SCORE". www.score.org. Retrieved 2017-09-16.
  31. ^ Quittner, Jeremy (13 March 2015). "How OnDeck Plans to Make Alternative Lending a Blue Chip Business". Inc. Retrieved 16 September 2017.
  32. ^ Faux, Zeke; Lawrence, Dune (13 November 2014). "Is OnDeck Capital the Next Generation of Lender or Boiler Room?". Bloomberg BusinessWeek. Retrieved 16 September 2017.
  33. ^ "No. 1 Convene - 2013 Fast 50 | Crain's New York Business". Crain's New York Business. Retrieved 2017-09-16.
  34. ^ "2014 Fast 50 | Crain's New York Business". Crain's New York Business. Retrieved 2017-09-16.
  35. ^ "Crain's New York Business - Fast 50". Crain's New York Business. Retrieved 2017-09-16.
  36. ^ "Crain's names 50 fastest-growing companies in 2016". Crain's New York Business. Retrieved 2017-09-16.
  37. ^ "OnDeck on the Forbes America's Most Promising Companies List". Forbes. Retrieved 2017-09-16.
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