Web: Online lending startup Affirm raises $100M

April 2016 by: From The Web

Don’t expect your mounting worries about the tech investment bubble to slow down the PayPal mafia.


Affirm, the online lending startup led by PayPal co-founder Max Levchin, this week disclosed a cool $100 million in series D equity. The lead investor: Founders Fund, the venture capital firm started by, yes, PayPal co-founder Peter Thiel.


The investment, coming as many venture capitalists are pulling back on their tech bets, brings Affirm’s total equity and debt funding to $425 million. The San Francisco company would not disclose its valuation, aside from Levchin’s description of the new investment as “an up round.”


Thiel is not Levchin’s first PayPal buddy to invest in Affirm; former executive Keith Rabois, now at Khosla Ventures, already sits on the startup’s board. But Founders Fund had previously invested in Glow, Levchin’s fertility-tracking app, and Levchin acknowledged that getting Thiel interested was an easier process for him than it might be for most founders.


“Peter and I were having dinner, and I told him I was thinking about raising money again. He said, ‘Well this time, can I have a look first?',” Levchin recalled Tuesday.


“It came together very quickly because we’ve known each other so long, and it’s a very friendly deal,” he said, though he hastened to add that Founders Fund “wasn’t in any way easier to convince as investors--they’re very rigorous.”


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