Spring Labs’ blockchain-based network that lets lenders share information for verifying consumers is poised to expand after the Los Angeles company raised $23 million.
It announced the Series A funding Wednesday and said it is building the first products on the Spring Protocol network that are designed to improve consumer and small-business lenders’ ability to identify borrowers and combat fraud.
“This capital enables us to continue to develop our core technology in the Spring Protocol as well as these new products,” Adam Jiwan, Spring’s CEO and co-founder, said in an interview.
Jiwan also said the company’s staff will expand to 50 people from the current 35.
GreatPoint Ventures led the funding round, along with contributions from existing investors RRE Ventures, Galaxy Digital, Multicoin Capital, the Pritzker Group and CardWorks.
Spring announced General Motors Ventures, the corporate venture capital arm of General Motors, as a first-time investor.
Earlier this year, General Motors Financial joined the Spring Protocol, which already had the support of online lenders such as Avant, OnDeck Capital and SoFi. More than 20 lenders are involved, and Jiwan said he is in discussion with two banks to join the network as well.
“We are in various stages of discussion with large financial services companies about how our tech can be used beyond our initial products,” he said. “That could create very substantial value over the next five years.”
Spring’s current product will begin to roll out in the next couple of months, Jiwan said.