San Francisco-based NerdWallet announced a $64 million Series A funding round led by Institutional Venture Partners (IVP) with participation from RRE Ventures, iGlobe Partners and additional angel investors. This is the first venture capital round for NerdWallet, the fintech startup that brings clarity to consumer finance decisions. The company aims to provide economic well-being for everyone.
“Consumers don't have a source of truth when making critical financial decisions,” said Tim Chen, CEO and founder of NerdWallet. “They are either turning to friends and family who aren't experts or to advisors who want to sell them something. NerdWallet intends to bridge this gap by being an informed and trusted data-driven partner for consumers.”
NerdWallet also raised an additional $33 million through a revolving loan facility with Silicon Valley Bank.
Whether it's selecting the best insurance provider, planning for retirement or starting a small business, consumers are faced with dozens of crucial personal finance decisions at every stage of their lives. NerdWallet helps consumers navigate these complex choices and provides transparency around all of their financial options.
“NerdWallet is the best kept secret in the financial technology market. With its explosive growth, strong profitability and strategic long-term vision, NerdWallet is positioned to win the multibillion dollar personal finance market,” said Jules Maltz, General Partner at IVP.
According to NerdWallet, last year, nearly 30 million consumers came to NerdWallet for accessible tools, research and expert advice to guide their financial decisions. The company's user base is growing by more than 150% year over year, while its revenues tripled.
According to Tom Loverro, who led the investment on behalf of RRE Ventures, “Traditional banking and financial services are under attack. The industry landscape will look dramatically different 10 years from today, with new technologies and startups changing the way consumers handle their finances.”
Image Credit: Flickr/401K2012
Editor's note: Correction was made for the amount raised from the Silicon Valley Bank from $36 million to $33 million.