Spring Labs, a blockchain company that spun out of Avant, has raised another $23 million.
The idea was to create a platform for lenders and other financial services companies to share information securely and in real time to prevent borrowers from loan stacking—or borrowing from multiple lenders, especially online companies like Avant—before the lenders realize it.
The goal is to build a similar system to what credit reporting bureaus offer, but one that’s less expensive and more secure, which is where blockchain comes in. For now, it’s still unproven at the scale needed by big lenders, but the idea has gotten a lot of interest.
The latest funding was led by GreatPoint Ventures, a fund run by clean-tech entrepreneur Andrew Perlman, which also invested in Uptake Technologies. Other investors include August Capital, as well as General Motors Ventures, RRE Ventures, Galaxy Digital, Multicoin Capital, Pritzker Group and CardWorks.
The company previously raised $15 million.
John Sun, one of Spring Labs’ co-founders, says the first version of the product will launch with early partners in the coming weeks. He said the company has signed up 25 partners, including Avant, GM Financial, SoFi and OnDeck Capital.
The company is based in Los Angeles, though Sun, who was a co-founder of Chicago-based Avant, says many members of the team split time between the two cities. He expects to add staff in Chicago as the company grows from 35 to 50 by year-end.