(via WSJ.com) Investors continued to see the potential in alternative lending platforms such as OnDeck Capital, which makes loans to small businesses, rallied more than 30 percent on its first day of trading on Wednesday. The company’s stock closed around $27.98, up 40 percent from its initial public offering price of $20 a share. OnDeck raised about $200 million from its initial offering on Tuesday night, valuing the company at about $1.3 billion.
The success of the initial stock offering of Lending Club, a peer-to-peer lender, has spurred investor interest in alternative lending. Unlike Lending Club, where outside investors make loans to borrowers, OnDeck lends from its own pool of capital to small businesses. The company sees small business as a market underserved by traditional large banks.
The company says it has collected more than 4.4 million customer payments since it made its first loan in 2007.
Read the entire story at WSJ.com: “OnDeck Capital, an Online Lender to Small Business, Rises After I.P.O.”
(Illustration: SmallBusiness.com from photo via WikiMedia Commons)