Fintech Startup YieldStreet Raises $113 MillionBy
YieldStreet Inc., a New York-based startup that packages and sells business loans to investors, said it raised $113 million in debt and equity to expand its offerings.
The three-year-old company specializes in loans to real-estate projects, small businesses and law firms. It pitches the assets as an alternative to stocks and bonds. YieldStreet competes with similar products offered by private-equity firms and hopes to eventually offer them to anyone.
“We’re trying to provide retail investors this type of product, and ultimately our goal is to reach as many as possible,” said Milind Mehere, the chief executive officer. “We hope to expand this to everyone sometime later this year.”
Venture capital firms Greycroft and Raine Ventures led a $12.8 million equity investment in YieldStreet, and each appointed partners to the board. A credit facility of $100 million came from a New York-based family office, which YieldStreet declined to name.