BC-SoMoLend Closes $1.17M Seed-Round,600


SoMoLend LLC, an alternative borrowing software-as-a-service lending

platform focused on the social, mobile and local aspects of the loan

market, has closed a $1.17 million seed-stage investment round. SoMo

offers new solutions for small businesses to obtain the money they

need to launch and sustain their operations.

CincyTech led the round, which also included Queen City Angels, the

North Coast Angel Fund, Blue Chip Partners, Shaker LaunchHouse, Eldar

Investment LLC, Clarion Direct Investment LLC, Clifford Holekamp,

Elizabeth Crowell, Bruce Terry, Bob Baron, Cheryl & Carlin Stamm and

numerous other individual investors.

The investment will be used to complete an alpha application of the

software, create market underwriting standards and develop a broader

capitalization plan. But even with its software still in development,

the company's innovative business model is winning accolades around

the country. SoMo was named a "Best of Show" demonstration at

FinovateSpring in San Francisco last week. The two-day conference

featured 63 demonstrations of various financial technologies, but only

seven overall were chosen as Best of Show.

CEO Candace Klein founded SoMoLend in 2011 when she saw that small

businesses needed more lending resources beyond traditional banks.

SoMo's technology connects credit-worthy businesses with corporations

and institutions looking to invest locally and with a purpose.

The social aspect ("So") of the business allows investors and

borrowers to connect before and during the loan process. Because

SoMoLend focuses only on commercial loans, the company can provide

complete transparency to lenders.

The mobile aspect ("Mo") of the business allows lenders and borrowers

to connect via location, in a hyper-localized geographic scope.

The signing of the JOBS Act in April will allow SoMo to use its

technology nationally once the Securities and Exchange Commission

(SEC) is satisfied that enough standards and best practices are in

place to protect crowdfunding investors. By using SoMo's platform,

small businesses can secure loans from family, friends, customers and

other individuals. Klein and her team spent months lobbying Congress

to pass the crowdfunding legislation.

"The JOBS Act is essential for our micro-lending platform," Klein

said. "We're trying to give lenders the ability to invest in people

and companies that they're passionate about while giving traditionally

overlooked borrowers the same opportunities for loans as

venture-backed companies."

The SEC will spend the next seven months deciding how to regulate

crowdfunding and micro-lending. Klein will co-chair a group made up of

crowdfunding's leading experts, known as the Crowdfund Intermediary

Regulatory Advocates (CFIRA), who will help outline these regulations.

About SoMoLendSoMoLend is a Web-based lending platform that uses

patent-pending technology to connect small business borrowers with

individual and organizational investors (lenders), executed within a

hyper-localized geographic scope. SoMoLend's user-friendly technology

allows small business borrowers to obtain loans from friends, family,

customers, community supporters and interested organizations as well

as from Facebook, Twitter, and LinkedIn connections. For more

information, visit http://somolend.com/(http://somolend.com/) or


About CincyTechCincyTech (http://www.cincytechusa.com/)is a

public-private seed-stage venture firm that invests in startup

businesses in high-tech industries in Southwest Ohio. With substantial

support from Ohio Third Frontier and corporations, foundations, civic

organizations and individuals in Cincinnati, it is stimulating the

growth of venture-worthy companies in information technology,

bioscience and advanced manufacturing.

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