i80 Group commits $1B in credit to over 15 companies

SaaS News -i80-Group-has-quietly-committed-$1B-in-credit-to-the-fintech-and-proptech-worlds(source: SaaS Industry)
At a Glance

i80 Group, an investment firm, has committed more than $1 billion in loans to more than 15 firms. I80 focuses on the financial and proptech industries. It conducts quarterly calls with venture capitalists, which is how it obtains the majority of its transaction flow for the time being.

I80 Group, an investment firm, has committed more than $1 billion over the years in credit to over 15 companies. The form offers credit only. It reached the $1 billion mark after receiving $500 million in fund commitments from an undisclosed “major global asset manager” and other institutional and individual investors.

The 15 companies include Properly, a real estate marketplace; MoneyLion, a finance app; and Capchase, a SaaS financing company.

The fintech and proptech industries are the emphases of I80, which takes its name from the highway that connects New York and San Francisco.

It became very clear to me that fintech was going to explode. At that time[2014-2015], it was still relatively new. And every time I spoke to a company, they would tell me, ‘We know how to raise VC, but what about the credit?’ I just saw this white space.

Marc Helwami, the founder of i80 Group

They are the two centers for the venture ecosystem. And we’re trying to be a bridge between those two cities[New York and San Francisco].

Marc Helwami, the founder of i80 Group

Affirm and PayPal co-founder Max Levchin’s SciFi; a16z (formerly known as Andreessen Horowitz); Khosla Ventures; Union Square Ventures; and QED are among the VC companies with which the firm collaborates.

In a perfect world, venture capital would be called venture equity. VCs’ capital is critical for companies to hire and get office space. But when it comes time to do what the actual business is, such as provide loans or buy homes, capital like ours is very accretive without VCs and management losing ownership in the business. In these cases, using both credit and equity makes a lot of sense.

Mr. Helwani, a former investment banker at Goldman Sachs

I80 has quarterly calls with venture capitalists, and for the time being, that’s how it gets the majority of its transaction flow. It also receives recommendations. Mr. Helwani thinks that the fact that the i80 team is made of operators and investors is a contributing factor.

In the following 60 to 90 days, the business aims to conclude another half-dozen acquisitions before focusing on raising more cash. “We want to fill this void and help companies raise money in their subsequent rounds at higher valuations,” Helwani said.

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