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
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.