American Express

To acquire Kabbage’s team and its full suite of financial technology products, data platform and IP built for small businesses. Kabbage’s products include access to flexible lines of credit, online bill payment, cash flow visualization tools, e-gift certificates, and the ability to centralize funds through the company’s recently launched business checking account.

Making banking work, without the paperwork

Neobanks

Kabbage

Platforms offering digital checking and savings accounts that target businesses and freelancers

BlueRun Ventures is a venture capital firm with offices in the United States, Shanghai, Beijing, and Korea. BlueRun invests in information technology, mobile, and consumer technologies, with an emphasis on mobile opportunities.  BRV has invested in over 160 companies, with select exits from PayPal (acquired by eBay), Waze (acquired by Google), Topsy (acquired by Apple), Coupa (NASDAQ: COUP), and more.  In 2005, BlueRun changed its name from Nokia Venture Partners. While branded as Nokia Venture Partners, the firm helped to build emerging market leaders such as Airgo, Bitfone, Cornice, PayPal, Wavemarket, and WiderThan.

BlueRun Ventures

UPS Ventures is the private equity strategic investment arm of UPS. The Fund is a corporate venture capital group which focuses on developing critical partnerships and acquiring knowledge returns from its investments in information technology companies and emerging market-spaces.

UPS Ventures

For 30 years the _Mohr Davidow Ventures team has invested in early stage technology-based startups that redefine or create large new markets. They believe that emerging information technology innovations are enabling a decade-long opportunity to invest in the “Era of Digital Engagement,” one in which personal, commercial, and public sector interactions of all kinds will be profoundly reengineered to leverage the power of mobile devices, cloud computing, and data analytics.  The Firm seeks to identify and partner with exceptional entrepreneurs who leverage these technologies to build companies where seamless, deep engagement with customers will create billion dollar markets in a number of different verticals. These verticals include: Digital Marketing, Advertising, & Media, Collaborative Enterprise Applications, The Digitization of Education and Health, Digital Financial Services, E‐commerce & Digital Retail Innovation, Mobile/Web‐Powered “LifeTech.” The Firm also has previous investments in the innovative life sciences & genomics space.  Leading companies funded by Mohr Davidow Ventures includes: Agile (Acquired by NYSE: ORCL); Aryaka Networks; Brocade; Coupa; Genomatica; HealthTap; Infusionsoft; Kabbage; nLight; ONI Systems (Acquired by NASDAQ: CIEN); Proofpoint (NASDAQ: PFPT); Rally Software (NYSE: RALY); Rocket Fuel (NASDAQ: FUEL); Rambus; Shutterfly (NASDAQ: SFLY); Ticketfly; Verinata Health (Acquired by NASDAQ: ILMN); and Visible Measures. The Firm has $1.85 billion under management.

Mohr Davidow Ventures

Hard Yaka makes early round investments in exchange space startups. Candidates are either verticals in particular categories of exchange markets or horizontals providing services (i.e. messaging or payments) across exchange sectors.

Hard Yaka

Thomvest is a cross-stage venture capital firm specializing in early-stage, growth-stage, start-up, and mid-venture investments. The company primarily focuses on opportunities with early-to-mid-stage companies in the fields of financial technology, marketing technology, cybersecurity, sales, and cloud infrastructure sectors. As part of their focus on these areas, they are committed to helping their companies become leaders in their fields through their work with them and through the focus on understanding where value can be created in these industries, as can be seen from the research they publish regularly.

Thomvest Ventures

SV Angel is a San Francisco-based venture fund. Their experience spans helping companies like Airbnb, Coinbase, Databricks, DoorDash, Faire, Flexport, GitHub, Notion, Pinterest, Snap, Square, and Stripe Scale. Over the last 30 years of investing, their core values of trust, loyalty, and integrity along with a founder-first approach have driven our strategy. They are a service organization, investing in founders who share these values. They support entrepreneurs in building lasting companies by assisting at key inflection points and leveraging networks to help them propel their businesses forward.

SV Angel

SoftBank Group provides venture funding and strategic support to exceptional entrepreneurs building disruptive enduring businesses. They are a small team of experienced entrepreneurs and investors who take an ''active'' approach to helping their companies reach their full potential. They manage $600 million across three funds and invest across a company’s lifecycle, from early to growth stages.   Through their close ties to a number of Asia’s leading mobile, internet and technology companies – including strategic partners SoftBank Corp, Yahoo! Japan and Alibaba Group – SoftBank Capital offers unique expertise to businesses seeking to address the Asian market.  Since 1995, SoftBank Capital has partnered with internet pioneers such as Criteo, Gilt Groupe, OMGPOP (Zynga), betaworks, BuzzFeed, Buddy Media (Salesforce.com), Huffington Post (AOL), Associated Content (Yahoo!), Danger (Microsoft), Geocities (Yahoo!), E*Trade and Yahoo!.

SoftBank Capital

TCW is a global asset management firm with more than four decades of investment experience and a broad range of products across fixed-income, equities, emerging markets, and alternative investments. Through the TCW, MetWest, and TCW Alternative Fund Families, TCW manages one of the large mutual fund complexes in the U.S. TCW’s clients include many of the world’s large corporate and public pension plans, financial institutions, endowments, and foundations, as well as financial advisors and high net worth individuals. TCW is headquartered in Los Angeles and has offices in New York, Boston, Chicago, London, Hong Kong, and Tokyo.

The TCW Group

Lumia is an expansion-stage VC firm partnering with forward-thinking US and European innovators expanding internationally for breakout growth. Lumia employs a hands-on strategy, working closely with management teams by pairing Silicon Valley insights and contacts with global knowledge sharing and relationships to propel companies through expansion-stage challenges and opportunities. It prefers to invest in internet and software companies with a focus on SaaS, mobile, cloud computing, infrastructure, and big data. It typically invests between $3 million and $30 million in companies with greater than $10 million annualized net sales.  Lumia also invests in select early stage opportunities via its ''Telescope'' program.   The company focuses on investing in primary and secondary transactions and in common and preferred shares. Lumia Capital was founded by Martin Gedalin in 2011 and is headquartered in San Francisco.

Lumia Capital

Reverence Capital focuses on a broad spectrum of middle-market financial services companies, in both private and public securities. We target control and influence-oriented minority investments, but remain flexible on the form and structure of the ultimate investment.  Founded in 2013 by Milton Berlinski, Peter Aberg and Alexander Chulack, Reverence Capital Partners is a private investment firm focused on the middle-market of the financial services industry.  Over the course of their careers, our founders have been active advisors and investors in the financial services space, have advised on hundreds of transactions across financial services and, collectively, have invested billions of dollars on behalf of institutional and high net worth investors.

Reverence Capital Partners

ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services. They serve more than 85 million private, corporate and institutional customers in Europe, North and Latin America, Asia and Australia.   They draw on our experience and expertise, their commitment to excellent service and their global scale to meet the needs of a broad customer base, comprising individuals, families, small businesses, large corporations, institutions and governments.

ING Group

Recruit Strategic Partners is a venture capital firm that invests in innovative startups from all around the world. It is a corporate venture capital arm of Recruit Holdings that seeks to invest in education and financial technology, digital healthcare, and infrastructure sectors. It was established in 2008 and is headquartered in Tokyo, Japan.

Recruit Strategic Partners

Scotiabankers are committed to helping individuals, companies, and communities to thrive in a changing world. From personal and business banking, brokerage, and insurance, to private wealth, and the most sophisticated commercial, corporate and institutional services, they serve the diverse needs of some 21 million customers in more than 55 countries.  Founded in 1832 in Halifax, Nova Scotia, their growth has always been fuelled by the success of their customers and their longevity secured by an unshakable commitment to carefully and expertly managing risk and capital.  That focus on doing what's right for customers—short- andlong-term—has made us a global financial services leader.  Headquartered in Canada, they are over 86, 000 Scotiabankers strong. Each of us are committed to being the best at understanding their customers' needs and all of us working together to deliver practical advice and relevant solutions that help their customers become financially better off.

Scotiabank

Yuan Capital invests in worldwide technology, healthcare, and finance companies, and is a Chinese private equity firm.

Yuan Capital

Mouro Capital is a venture capital firm backing entrepreneurs who are shaping the future of financial services. With $400 million in assets under management and supported by Banco Santander, Mouro invests across the fintech value chain in early to growth stage start-ups across Europe, North America and Latin America.

Mouro Capital

ING Ventures is the venture capital arm of ING making minority investments in early stage companies that have a strategic relevance to ING. It targets disruptive technologies that have the potential to impact ING’s business and ensure customers and clients get access to best-in-class services. Based in Amsterdam but shadowing ING’s geographic footprint of 41 countries, ING Ventures is a €300 million fund that not only drives innovation within ING, but also helps entrepreneurs with hands-on support, know-how, scaling expertise and access to our distribution network.

ING Ventures

SoftBank Vision Fund is a subsidiary of Softbank Group that specializes in growth capital and social impact investments. Sectors that the fund invests in include the internet of things, artificial intelligence (AI), robotics, communications infrastructure, telecoms, computational biology, biotech, cloud technologies and software, consumer internet businesses, financial technology, and mobile apps. The Fund is designed to be a catalyst for technology progress in anticipation that it will expand SoftBank's capabilities, accelerating progress towards SoftBank 2.0. It aims to invest in businesses and foundational platforms that SoftBank believes to revolutionize and innovate the world tomorrow.

SoftBank Vision Fund

Kabbage is a financial technology and data company pioneering a new, automated way for small businesses to access working capital. The company simplifies the manual application process to one that is 100% online and automated. Businesses can use their business data to submit an application online and receive an answer in minutes instead of waiting weeks and filling out numerous forms like traditional lending methods. Businesses can access ongoing lines of credit up to $250,000. Kabbage leverages business data generated such as revenue, accounting data, business transactions, shipping data, social media and other sources to understand a business’s overall health and calculate credit lines throughout the customer lifecycle. The company began serving online merchants in 2011 and extended its automated lending platform to all small businesses – online and brick-and-mortar – in February 2014. In November 2013, Kabbage expanded its business to mobile with an iOS and Android app that enables users to apply or access their funds from their smartphones. Kabbage used to provide a consumer lending product, Karrot, but it is no longer available. Kabbage expanded the application of its platform in March 2015 by licensing the data and technology platform to power lending for other organizations. The company was named one of Forbes magazine’s Most Promising Companies list for the second year in a row. Kabbage further extended its lending reach in May 2015 with the announcement of the new Kabbage Card, which gives businesses the ability to pay for items at the point of sale with a purchasing card tied to their Kabbage account. Kabbage also collaborated with MasterCard in May 2015 to make Kabbage’s data and technology platform available through MasterCard’s network of acquirers. In August 2015, Kabbage was named the 36th fastest-growing private company in America on the Inc. 500 list. In October 2015, Kabbage completed a Series E funding round of $135 million led by Reverence Capital Partners. Holland’s ING, Spain’s Santander (via InnoVentures, Santander's venture capital arm); and Canada’s Scotiabank also participated in the round. Kabbage also announced a strategic partnership with ING to deliver instant capital to small businesses throughout Spain. In June 2016, Kabbage was named to CNBC's annual Disruptor 50 list of the most forward-thinking and ambitious companies that are revolutionizing industries and markets worldwide. Two months later, Kabbage was named to the Inc. 500 list of the country's fastest-growing private companies for the second year in a row In August 2016, Kroll Bond Rating Agency (KBRA) upgraded and affirmed ratings on Class A2-2 Certificates issued by Kabbage Funding 2014-1 Resecurization Trust. The certificates were upgraded from BBB+(sf) to A-(sf) based on structural improvements to the transaction’s concentration requirements and the existence of more historical data relating to Kabbage’s collateral. KBRA also affirmed the ratings on the Class B2A Certificates of BB-(sf), Class B2B Certificates of BB-(sf) and Class B2C Certificates of B+(sf), which were initially rated in November 2015. In 2017, the company raised $250 million from Softbank Group Corp., raising its total equity funding to $500 million, making Kabbage one of the most well-funded companies with a female co-founder at the helm. It also secured the largest asset-backed securitizations of small business loans in the online lending industry of $525 million. In November, it diversified its debt-funding sources further with a $200 million revolving credit facility with Credit Suisse, earning investment-grade ratings of ‘A’ and ‘BBB’ by DBRS. It ranked on the Inc. 500 list as one of the country’s fasting-growing private companies for a third consecutive year, on Deloitte’s Fast 500 list, among CB Insights Fintech 250, in the top 10 of KPMG’s Fiintech 100, and its co-founder, Kathryn Petralia, was named one of Forbes 100 Most Powerful Women in the World.

Kabbage, founded in 2008, is a financial technology company that provides lending and financial management solutions for small businesses. The company offers business lines of credit ranging from USD 2,000 to USD 250,000, with repayment terms of 6, 12, 18, or 24 months. Annual percentage rates (APRs) for these credit lines range from 3.00% to 27.00%, depending on the borrower's creditworthiness and chosen repayment term. Kabbage's lending platform utilizes a data-driven approach, connecting to applicants' business bank accounts to review cash flow and determine eligibility quickly.
In August 2020, American Express acquired Kabbage's technology and platform, integrating it into its suite of small business products. Following the acquisition, Kabbage's loan portfolio, including loans made through the Paycheck Protection Program (PPP), was not part of the purchase and continued to operate under the name KServicing.
To qualify for a Kabbage line of credit, businesses must have a minimum credit score of 640, at least one year in business, and monthly revenue of USD 3,000 or more. The application process is designed to be quick and straightforward, with potential approval within minutes and funding as fast as the same day for some borrowers.
Key customers and partnerships
Kabbage primarily serves small businesses across various industries in the US. Kabbage's most significant relationship is with American Express, which acquired the company in 2020. This acquisition has allowed Kabbage to integrate its services with American Express's broader suite of small business products, aiming to provide a comprehensive financial management solution for small business owners.
Additionally, Kabbage has partnered with Green Dot Bank to offer the Kabbage Checking account, which was launched in June 2021. This partnership enables Kabbage to provide FDIC-insured business checking accounts with features such as mobile banking, cash deposits at retail locations, and access to a network of free ATMs.

Kabbage

Sources

About EDGE

Contact Us

Resources

Area of Focus

Technology Research Made Effortless