Avant: Online Credit-First Fintech Platform (2024)

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Over centuries, lending went from formal to informal sectors, but the loan application and obtaining process was still complex and time-consuming. However, with the overall banking industry, lending has also turned digital in the past decade.

In 2022 the digital lending industry's global market size was estimated to be $12.6 billion and is projected to grow at a CAGR of 19.4%, valuing $71.8 billion by 2032. With fintech companies offering digital lending platforms, people can now apply for loans and credit cards online following a simple and quick process.

One such fintech startup is Avant. This Illinois, United States-based online lending platform is recognized for offering safe financial products. Let's dive in to uncover everything about Avant, its founders, its startup story, its business and revenue model, funding, growth, and more.

Avant – Company Highlights

Company NameAvant
HeadquartersChicago, Illinois, United States
SectorFinancial Technology
FoundersAI Goldstein, John Sun, and Paul Zhang
Founded2012
Valuation$2 billion (2022)
Websiteavant.com

Avant – About
Avant – Founders and Team
Avant – Startup Story
Avant – Mission and Vision
Avant – Business Model
Avant – Revenue Model
Avant – Products and Services
Avant – Challenges Faced
Avant – Funding and Investors
Avant – Mergers and Acquisitions
Avant – Patents and Trademarks
Avant – Growth
Avant – Partners
Avant – Awards and Achievements
Avant – Competitors

Avant – About

Avant is a credit-first financial technology company offering a full suite of digital financial solutions, including loans and credit cards, to meet customers' needs, regardless of where they are on their financial journey.

Serving 49 states in the United States and the United Kingdom, the company has connected approximately 3 million customers to $9 billion in loans and 1 million credit cards.

Avant – Founders and Team

Al Goldstein, John Sun, and Paul Zhang are the founders of Avant.

AI Goldstein

Avant: Online Credit-First Fintech Platform (1)

Al Goldstein went to Gies College of Business (University of Illinois Urbana-Champaign) to study BS in Finance and Math. In addition to co-founding Avant, he is the co-founder at Enova International, Pangea Properties, Amount, and StoicLane. Moreover, Goldstein is the Executive Chairman at Avant, Pangea Properties, and Amount and CEO at Enova International and StoicLane.

John Sun

Avant: Online Credit-First Fintech Platform (2)

John Sun studied BS in Finance at Gies College of Business (University of Illinois Urbana-Champaign). He founded SpringCoin and worked as CEO. Furthermore, Sun is the Co-founder of Avant and the Founder and CEO of Spring Labs.

Paul Zhang

Avant: Online Credit-First Fintech Platform (3)

Paul Zhang completed BS in Computational Bioengineering at the University of Illinois Urbana-Champaign. He is the ex-Senior Software Engineer of Enova Financial and the ex-Technical Founder of Debteye. Currently, Zhang is the co-founder and CTO at Avant. Moreover, he is the part-time Board Member at Champaign and Angel Investor at Hyde Park Angels.

With Matt Bochenek as the CEO and Margaret Hermes as the COO, Avant employs 650+ employees, of which 250 are local individuals.

5 key trends in the fintech industryFintech is a rapidly growing industry. It develops and provides both, new solutions to customers and technology for financial institutions. What does the Polish fintech industry look like right now? What trends are currently key ones in this sector? Find answers to these and other questions in this…StartupTalkyNeeraj Singh Shekhawat

Avant – Startup Story

Avant, also known as AvantCredit, was founded in 2012 to improve the borrowing experience for middle-income consumers. John Sun and Paul Zhang graduated from the Y Combinator startup program in 2012 and looked forward to building their business, Debteye, a platform to help people manage their debt with informed decision-making based on their unique financial situation.

Since Sun and Zhang had no income, they thought to apply for a personal loan at a traditional brick-and-mortar establishment. Sun found the loan application and obtaining process time-consuming and frustrating. Along with this, Sun and Zhang's Y Combinator venture inspired them to establish Avant.

As former interns of AI Goldstein's Enova, Sun and Zhan grabbed the opportunity of partnering with the Chicago entrepreneur in December 2012. It's when they built a product to streamline the borrowing process.

The company issued its first loan in 2013; later, it expanded to the UK in the fall. In April 2015, Avant launched the Avant Institutional Marketplace, enabling institutional investors to buy loans originating from the Avant technology platform.

The company launched its credit card in 2107. In February 2020, Avant spun off its SaaS financial business unit as a new Amount company.

Avant – Mission and Vision

Avant's mission is to empower its customers with innovative digital solutions designed to help them achieve their financial goals. The company honors its customer's financial journey by serving their needs with integrity, trust, and transparency.

Avant – Business Model

Avant developed proprietary software that uses machine learning technology to mitigate default risk and fraud efficiently. The company provides a fully online experience, allowing customers to apply on Avant's website and eliminating the need for physical branches.

Avant's platform simplifies the borrowing process by conducting bulk employment verification and doing funding over the Internet. Its technology leverages algorithms, machine learning protocols, analytical tools, and standard consumer data to determine a customized rate, amount, and length at which an individual can borrow money.

Avant – Revenue Model

Avant offers personal loans ranging between $2,000 and $35,000 at lower possible interest rates. Moreover, it earns revenue by providing credit lines and online banking. The annual membership fee is $39, and the credit limit can range from $300 to $3,000.

Avant – Products and Services

Avant offers credit cards and several types of loans, including personal loans, adoption loans, emergency loans, home improvement loans, debt consolidation loans, wedding loans, IVF & fertility loans, and vacation loans.

Avant: Online Credit-First Fintech Platform (6)

Avant – Challenges Faced

Avant agreed to pay $3.85 million to settle the charges of the FTC on April 15, 2019. As per FTC's (Federal Trade Commission) lawsuit, the company used deceptive loan servicing practices. In addition, Avant violated the Telemarketing Sales Rule and the Electronic Fund Transfer Act.

Avant – Funding and Investors

With 13 funding rounds, Avant raised $2.1 billion. On December 7, 2022, the company conducted its latest funding round –Private Equity Round. 20 investors invested in Avant, of which 8 are the lead ones, including Ares Management, WebBank, Pamlico Capital, Balyasny Asset Management, and General Atlantic.

DateRoundNumber of InvestorsMoney RaisedLead Investor
December 7, 2022Private Equity1-Ares Management
December 7, 2022Debt Financing1$250 millionAres Management
July 14, 2022Debt Financing1$250 millionWebBank
October 22. 2021Private Equity Round1-Pamlico Capital
September 29, 2015Series E10$325 millionGeneral Atlantic
April 13, 2015Debt Financing2$400 millionKohlberg Kravis Roberts
December 4, 2014Series D10$225 millionTiger Global Management
December 4, 2014Debt Financing$300 million-
August 21, 2014Debt Financing1$200 millionJefferies
July 23, 2014Series C1$75 millionTiger Global Management

Avant – Mergers and Acquisitions

Avant acquired 2 companies, Level on April 7, 2021, and ReadyForZero on March 31, 2015.

Avant – Patents and Trademarks

Avant is registered with 4 trademarks, and 'Insurance; Financial Affairs' is the popular class.

Avant – Growth

In 2022, Avant's annual revenue was estimated to be $134.8 million ($195,330 revenue per employee). Moreover, its credit card users grew by 170% over the past two years. The company was valued at $2 billion in 2022. In 2013, Avant had 90 employees, which increased to 680 in 2023, with 566.6% growth.

Avant – Partners

Avant collaborates with distribution, co-brand, funding, and product partners. Recently, the company partnered with Major League Soccer (MLS) and TreeQual.

Avant – Awards and Achievements

Avant has been featured in The New York Times, Bloomberg, The Wall Street Journal, TechCrunch, and Fortune. Moreover, the company received multiple honorable awards:

  • Named #6 to Forbes America's Most Promising Companies list and Next Billion Dollar Startups list in 2015.
  • Inc. Magazine listed co-Founder and CTO Paul Zhang as 30 Under 30.
  • Executive Chairman AI Goldstein received EY Entrepreneur of the Year Midwest award.

In addition, the company received the Moxie Award for Breakthrough Digital Company of the Year and one of the Top Global Private Companies by AlwaysOn Global.

Avant – Competitors

Some direct competitors of Avant are as follows:

  • Chime
  • OneMain Holdings
  • SoFi
  • Capital One
  • Applied Data Finance
  • The Social Loan Company
  • Prosper Marketplace
  • Lending Club
  • OnDeck

FAQs

What does Avant do?

Avant is a credit-first financial technology company offering a full suite of digital financial solutions, including loans and credit cards, to meet customers' needs, regardless of where they are on their financial journey.

Who are the founders of Avant?

AI Goldstein, John Sun, and Paul Zhang are the founders of Avant.

How Avant earns revenue?

Avant earns revenue by providing credit lines and online banking. The annual membership fee is $39, and the credit limit can range from $300 to $3,000.

Who are the main competitors of Avant?

Some direct competitors of Avant are as follows:

  • Chime
  • OneMain Holdings
  • SoFi
  • Capital One
  • Applied Data Finance
  • The Social Loan Company
  • Prosper Marketplace
  • Lending Club
  • OnDeck

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Avant: Online Credit-First Fintech Platform (2024)

FAQs

Avant: Online Credit-First Fintech Platform? ›

Avant is a credit-first financial technology company* that provides access to innovative financial solutions, including personal loans and credit cards, that meet customers' needs wherever they are on their financial journey.

What bank owns Avant card? ›

Avant branded credit products are issued by WebBank.

Who owns AvantCredit? ›

Avant, LLC, formerly AvantCredit, is a private Chicago, Illinois-based company in the financial technology industry. The company was established in 2012 by serial entrepreneur Albert "Al" Goldstein, John Sun, and Paul Zhang.

Is Avant loans legitimate? ›

Avant may be a workable personal loan option for those with fair credit. However, borrowers should be aware of the lender's administrative fees and possibly high APR. Borrowers with fair credit scores can qualify. Funds for unsecured personal loans are generally deposited the next business day after approval.

What is the highest credit limit with Avant? ›

CREDIT OPTIONS
  • $0-$99. ANNUAL MEMBERSHIP FEE¹ ²
  • $0-$1.99. MONTHLY FEE¹ ²
  • $300-$3,000. CREDIT LIMIT¹ ²

Is Avant a good credit card for bad credit? ›

The Avant Credit Card is an unsecured credit card for people with a fair or average credit score or a limited credit history. While it requires no deposit and can help you build credit with responsible use, it doesn't offer many other benefits.

What is the credit score for Avant credit card? ›

The Avant Credit Card is one of the most basic unsecured credit cards out there. It doesn't offer many perks, and it's designed for those with fair credit -- typically a credit score between 580 and 669.

Why are AvantCredit in trouble? ›

The FTC also alleged that the company withdrew money from customers' bank accounts or charged their credit cards without authorization, failed to properly and timely credit payments made by check, provided deceptive payoff quotes to customers, and tried to collect more money even after the customer paid the quoted ...

Is Avant a predatory lender? ›

The Federal Trade Commission is returning more than $3.7 million to consumers who lost money because of unfair and deceptive loan servicing practices by online lender Avant, LLC.

What is the maximum loan amount for Avant? ›

* Loan amounts range from $2,000 to $35,000. APR ranges from 9.95% to 35.99%.

Can I take out 2 loans with Avant? ›

As mentioned, some lenders set restrictions on how many loans you can take out at once. Online lenders like Avant and Rocket Loans, for example, only allow one loan to be taken out at any given time.

Does Avant give bad credit loans? ›

Avant is best for short-term bad credit personal loans

Borrowers with credit scores as low as 580 may qualify for an Avant personal loan that can be paid off in one year. Most bad credit lenders set their minimum score at 600 and many lenders have a minimum payoff term of two years.

Does Avant do a hard credit check? ›

Complete loan application: If you choose to move forward with your application, Avant will do a hard credit check at that point, which can temporarily drop your credit score for a few months.

Is it hard to get a loan from Avant? ›

It is not hard to get a personal loan from Avant if you have a credit score of 580 or higher, enough income to afford the loan, and a valid bank account. You will also have to meet other common requirements like being at least 18 years old and being a U.S. citizen or a permanent resident.

How long does it take for Avant loan to be approved? ›

The Avant loan timeline includes around 1 to 2 business days to get approved for an Avant loan and another 1 to 2 business days to receive the funds after approval. Keep in mind that this is a typical applicant's experience, and in some cases it could take longer.

Does Avant call your employer? ›

Employer verification: As part of the loan verification process, Avant may contact your employer to verify your employment. (During the application process, you provide authorization for this verification.)

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