Rotunda Capital invests $20 mln in StreetShares
Reston, Virginia-based StreetShares Inc, a provider of small business loans and government contract financing for businesses owned by members of the military and veterans’ community, has secured $20 million in funding. The investor was Rotunda Capital Partners LLC.
BETHESDA, MD (January 24, 2018) Rotunda Capital Partners, LLC, a lower middle-market private equity firm, has invested $20 million into StreetShares Inc., a leading provider of small business loans and government contract financing for businesses owned by members of the military and veterans’ community. The investment provides growth capital for StreetShares and establishes Rotunda Capital as the Company’s largest investor.
“StreetShares has built a differentiated financial services platform by combining a military-affinity focus, cutting-edge credit application and adjudication technology, and an experienced and dedicated team”, said John Fruehwirth, Managing Partner at Rotunda. “We are pleased to help StreetShares continue to dramatically improve access to credit for veteran-owned small businesses while providing unique investment opportunities for their supporters.”
StreetShares’ technology captures the social loyalty that exists within the military and veterans’ community and harnesses that trust to lower risks in financial transactions. The StreetShares’ model provides lower interest rates to borrowers and higher returns to investors.
“Rotunda Capital’s experience in growing both financial services and fintech platforms will be exceptionally valuable in this new, exciting phase of our growth”, said Mark L. Rockefeller, CEO of StreetShares. “The StreetShares’ team is thrilled to partner with investors who not only bring deep expertise, but also share the StreetShares’ vision of providing value to a unique and special community of businesses, and putting our members needs first.”
“Built by veterans, for veterans, the Company’s unique mission-driven ethos is evident throughout the organization,” added Bob Wickham, Partner at Rotunda Capital. “Rotunda is proud to join StreetShares in supporting the millions of our military heroes that are pursuing their entrepreneurial dream.”
StreetShares offers unique financial solutions for America’s heroes and their communities. StreetShares’ technology engages the authentic social loyalty within the military community to lower credit risk and improve access to attractive financing alternatives for veteran-owned small businesses. StreetShares provides a suite of specialty finance products focused on the military and veterans market, including small business loans, lines of credit, and invoice factoring and account receivables financing for the government contract (GovCon) community, as well as the StreetShares Patriot Express® program. StreetShares also offers unique social-impact investments, including Veteran Business Bonds, which allows retail investors to support veteran-owned businesses. StreetShares is veteran-run and located outside of Washington, D.C. To learn more, please visit: www.StreetShares.com.
About Rotunda Capital
Rotunda Capital Partners, LLC is a private equity firm that invests equity capital in family/founder run firms within its four core verticals – financial services, distribution, logistics and business services. The firm uses a rigorous approach to identify market-leading companies with identifiable growth opportunities and capable management teams. It focuses on Building Better Businesses through its Rotunda Performance System by actively providing guidance and drawing on deep industry and financial relationships to contribute to the successful execution of the portfolio company’s strategic plan. Rotunda Capital has completed 11 platform investments and realized four successful exits. For more information visit www.rotundacapital.com.