The news: Possibility of financinga Seattle startup that offers loans just raised another $20 million and plans to launch a new credit card.
The details: The company has started selling small loans that give borrowers more time to repay while helping people rebuild their credit. The new product is a credit card that does not charge interest or late fees. users instead pay a flat monthly fee up to a limit of $800. It does not require a credit check or security deposit.
The strategy: potential CEO Tony Huang said credit card companies make most of their revenue by lending to “vulnerable” customers who are in debt and have to pay interest and late fees. “The whole industry has an economic incentive to keep people in debt,” he said. Possible does not take advantage of indebted customers.
“The Possible Card is not only the most secure credit card ever, it’s also the first card that helps customers spend less, not more, of their hard-earned money,” Huang said.
Possible is also launching a cash advance product called Possible Cash, which helps customers get approved for a Possible card if the money is repaid on a regular, on-time basis.
Funding : Previous backers including Union Square Ventures, Canvas Ventures and Unlock Venture Partners participated in the new round, as well as new investor Euclidean Capital. Total funding is $45 million to date.
Possible also recently partnered with Coastal Community Bank to accelerate its development.
The people: Huang and his co-founders — Prasad Mahendra and Tyler Conant – previously worked together at Axon, the leading maker of non-lethal Taser stun guns, police software and supplies, including dash cams and police cameras.
Possible key hires recently made:
- Kevin Platshonformer Chief Marketing Officer of Venmo, as CMO
- Ellen Falbopreviously Senior Credit Officer at Capital One, as Chief Credit Officer
- Jesse Leveyformer President of Credit Sesame, as Chief Product Officer.
Metrics: Possible has issued over 1.65 million loans to over 500,000 US customers. The 100-person company did not disclose revenue data. It’s not profitable yet.