Social lending platform SoMoLend has closed a $1.17 million seed investment round. Somolend is a lending platform which allows businesses to receive loans through their social networks.
You may remember SoMoLend's address to our readers after the JOBS Act was signed on Daily Crowdsource. In that talk, CEO Candace Klein explained what the JOBS Act passing meant for business.
Klein founded the company in 2011 when she saw that small businesses needed better lending resources, and today the million-dollar investment will be used to create the software, create market underwriting standards and develop a broader capitalization plan.
It will be interesting to see what the final product will look like and how readily businesses will use the service.
The technology will be officially available seven months from now when the SEC have approved the parts of the JOBS act which enable the kind of investment crowdfunding SoMoLend will provide.
The JOBS Act is essential for our micro-lending platform. We’re trying to give lenders the ability to invest in people and companies that they’re passionate about while giving traditionally overlooked borrowers the same opportunities for loans as venture-backed companies. -Candace Klein
We're excited to see more companies like SoMoLend pop up as investment crowdfunding becomes a common practice in the US.
How do you feel about the coming changes? Let us know in the comments below.