Jason Guss
Octane Lending has closed on $50 million in a Series E funding round led by Peter Thiel’s Valar Ventures, based in New York. Upper90, also of New York, participated.
So far, the New York fintech has raised $192 million in equity, and $2.3 billion overall, primarily via asset-backed securitization. Octane finances big-ticket lifestyle purchases, including recreational vehicles, or RVs, and powersports vehicles such as motorcycles, ATVs, UTVs and watercraft.
Growing Traction
“Octane’s digital tools and broad credit coverage have propelled us to become a leader in our initial market of powersports and gain significant traction in adjacent markets, like RVs,” said Octane co-founder and CEO Jason Guss, a former Capital One executive.
“This new funding will help us build on this momentum and expand into new markets as we connect even more people with their passions,” added Guss, a Yale graduate who also serves as managing partner of Raven Ridge Capital.
In July, Octane closed a $365 million securitization deal, collateralized by fixed-rate loans issued by its in-house lender, Roadrunner Financial. It was Octane’s eleventh asset-backed securitization transaction since launching the program in December 2019. The company has completed more than $3.7 billion of asset-backed securitizations to date.
Expanding Range
“We’re thrilled to close our second transaction of the year and are grateful to see such strong recurring participation by our existing institutional investors,” said Octane’s chief financial officer, Steven Fernald, said after the deal closed. “Likewise, we welcome the addition of several new asset managers, pension funds, banks, and insurance companies to our best-in-class ABS platform, which continues to be a key differentiator for Octane and a testament to the underlying strength of our business.”
Roadrunner has originated over $4 billion in loans and expanded its range of funding to include tractors, trailers and electric vehicles. Octane works with over 30 original equipment manufacturer partners, and operates a network of 4,000 dealer-partners, and a team of over 500 in remote and hybrid roles.
New York-based Valar Ventures, co-founded by investor Peter Thiel and others, specializes in backing fintech startups. Its portfolio includes Wise, Stash and BitPanda. Upper90’s portfolio includes fintechs ToolBox and Finley, and sustainability startup HumanCo.