College Ave Student Loans has secured $20 million in financing from Comcast Ventures, the venture capital affiliate of Comcast NBCUniversal, with participation from Fenway Summer Ventures (headed by former Consumer Financial Protection ‘Bureau Deputy Director Raj Date), DW Partners, former SLM Corp. CEO Al Lord, and existing as well as new individual shareholders.
In addition to the funding, Dave Zilberman, managing director, Comcast Ventures, will join College Ave’s board.
The funding is good news for Delaware economic development efforts that are focusing on start-ups that could become larger employers in coming years. The financial services industry is currently dominated by large companies.
“We’re very excited about the success of our recent capital raise,” said Joe DePaulo, College Ave’s co-founder, chairman, and CEO. “The education finance market is in the first stage of a meaningful change. With our innovative products and state-of-the-art technology platform, we’re able to deliver what today’s customers want: loans that are simple, clear, and personalized to their unique needs.”
Founded by former Sallie Mae executives and industry veterans, College Ave. began originating loans in December 2014 and has received more than $1 billion in loan requests from applicants since inception.
The company says it is the first lender to launch with a focus on the in-school student loan market and offers options for students and their families.
“With its exceptional growth and strategic long-term vision, College Ave Student Loans is well positioned to disrupt the multi-billion dollar student loan marketplace,” said Dave Zilberman, managing director of Comcast Ventures. “We are very excited to lead College Ave Student Loans’ funding round and help the company to continue to grow and scale.”
Wilmington-based College Ave has now raised more than $40 million in equity funding since its creation in August 2014 and currently has more than $1 billion of committed loan purchasing power from multiple sources, a release stated.