After a successful pilot in Dallas, an Austin-based online loan lender, that bases its rates on crowdfunding efforts, has committed $5 million for investment in Dallas-area startups.
During the pilot, Able, founded in 2014 and led by CEO and co-founder Will Davis, loaned $2 million to area companies including Coregami, Musicmakers, Grit by Brit, and Simply Fit Meals. The continued demand solidified Able’s decision to commit to Dallas.
“DFW is an important market for Able,” Evan Baehr, Able president and cofounder, said in a released statement. “The caliber of entrepreneurs, innovation, and small business ecosystem with groups like The Dallas Entrepreneur Center and Tech Wildcatters aligns perfectly with our collaborative lending model.”
Able lends up to $1 million to businesses. For pre-revenue business, Able Start allows entrepreneurs to create a loan with customized rates and repayment schedules. The loans’ terms are based on companies’ ability to crowdfund. Able Start, aimed at pre-revenue companies, relies 100 percent on crowdfunding. Able Growth, which includes investment from Able, requires that loan recipients raise at least 10 percent of the loan from two people. Able will fund the remaining percen t of capital. The more a company raises from its network, the more it will save on its rate.
Able plans to break up the $5 million investment into loans for about 20 companies. Weston Betts, Able’s Dallas Market Manager, will meet with entrepreneurs 10 a.m. every Wednesday at the DEC, following 1 Million Cups.
The company, which targets small businesses for its loans, is hosting a launch party at 5:30 p.m. Monday at the Dallas Entrepreneur Center. The event will include a fireside chat with Baehr and DEC CEO Trey Bowles.
