Social Finance, Inc. (commonly known as SoFi ) is an online personal finance company that provides student loan financing, mortgages and personal loans.
Video SoFi
Histori
2011-2013
SoFi was founded in 2011 by Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady, four students who met at the Stanford Graduate School of Business. The founders hope SoFi can provide a more affordable option for those who take the debt to fund their education. The company's inaugural loan program is a $ 2 million pilot at Stanford. For this pilot, 40 alumni invested an average of $ 50,000 to 100 students.
In September 2012, SoFi raised $ 77.2 million, led by Baseline Ventures, with the participation of DCM and Renren. Additional investors include Ron Suber.
On October 2, 2013, SoFi announced that it has raised $ 500 million in debt and equity to fund and refinance student loans. The total amount of these funds comes from $ 90 million in equity, $ 151 million in debt, and $ 200 million in the form of bank participation, with the remaining capital of alumni and public investors. $ 151 million in debt included $ 60 million in credit lines from Morgan Stanley, and a $ 41 million credit line from Bancorp.
As of September 2013, SoFi has funded a $ 200 million loan to 2500 borrowers in 100 qualified schools.
In November 2013, SoFi announced an agreement with Barclays and Morgan Stanley to create bonds backed by peer-to-peer student loans, and this would create the first securitization of these loans to receive credit ratings.
2014-2018
In April 2014, SoFi raised $ 80 million in a Series C round led by Discovery Capital Management with the participation of Peter Thiel, Wicklow Capital, and existing investors. The money is raised to expand the business footprint of student loan company refinancing and to expand into new products such as mortgages and personal loans.
In February 2015, the company announced a $ 200 million funding round led by Third Point Management. In the same month, the company officially began offering personal loans. In March 2015, the company offered mortgages in more than 20 countries, up from its initial launch including under ten countries in October 2014. In April 2015, the company has funded more than $ 2 billion in loans, including student refinancing loans, mortgages , personal loans, and MBA loans. To celebrate the $ 2 billion milestone, SoFi announced a contest, # 2BillionTogether, to pay off one of its student loan members. In September 2015, Former SEC Chairman Arthur Levitt was added as an advisor. The company also raised $ 1 billion worth of investments from SoftBank and said it has funded $ 4 billion in loans.
In May 2016, SoFi became the first online startup lender to receive triple-A ratings from Moody's. In September 2016, SoFi launched SoFi in the Workplace, an employee benefits program to reduce student debt and build financial health, and announced it has more than 600 corporate partners. As of October 2016, SoFi has funded more than $ 12 billion in total loan volume and has 175,000 members. In February 2017, it was announced that Social Finance Inc. garnered an additional $ 500 million from an investor group led by Silver Lake, and also includes SoftBank, to help support global expansion.
On September 11, 2017, Chief Executive Mike Cagney announced he would step down at the end of the year for alleged sexual harassment and passing risk and compliance controls. Announced January 23, 2018, Anthony Noto resigned from his position as COO of Twitter, to become CEO of Social Finance. In April 2018, SoFi announced that Michelle Gil, who previously worked at TPG and Goldman Sachs, as Chief Financial Officer.
Maps SoFi
Model
SoFi initially used an alumni-funded loan model that connects students and new graduates with alumni and institutional investors through special student loan funds. Investors receive financial returns and borrowers receive rates lower than those offered by the federal government. The company seeks to minimize failure by focusing on students and low-risk graduates.
When SoFi's product offerings were expanded to include mortgages, mortgage refinancing and personal loans, the company shifted from an alumni-financed model to a non-traditional guarantee approach that focused on lending to financially responsible individuals. SoFi uses an underwriting model that examines free cash flow, history and professional education in addition to the history of bill payments that are responsible for evaluating its borrowers.
References
External links
- Official website
Source of the article : Wikipedia
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