Avant (company)
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| Private | |
| Industry | Financial Technology, Financial Services, Consumer Finance |
| Founded | 2012 |
| Founder | Al Goldstein, John Sun, Paul Zhang |
| Headquarters | Chicago |
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Area served
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Worldwide |
| Products | personal loans, lines of credit |
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Number of employees
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700 (2015) |
| Website | avant |
Avant, Inc., formerly AvantCredit, is a private Chicago, Illinois-based company in the financial technology industry. The company was established in 2012 by serial entrepreneur Albert “Al” Goldstein, John Sun, and Paul Zhang. Initially structured as a mid-prime lender, the company issued its first personal unsecured loan in early 2013 using its proprietary technology to determine an individual’s creditworthiness.
Avant Credit launched in late 2012 and offers consumers personal loans ranging from $1,000-$35,000 and loan terms from 2–5 years. Avant has a transparent model with APR ranging from 9.95-36%.
Avant’s technology applies algorithms, machine-learning protocols, and analytical tools in addition to the standard consumer data pulled to determine a customized rate, amount and length at which money can be borrowed. The company began providing access to loans in just 16 states in 2013. Avant currently issues loans in 46 states, and in October 2013, the company expanded beyond US borders to Canada and the United Kingdom.
From 2012-2015 the company saw substantial growth with over $1 billion in loans originated through Avant’s website and $1.4 billion in contributions by investors, including August Capital, Tiger Global and Victory Park Capital.
Upon entering the growing financial technology FinTech industry, Avant developed proprietary software that attempts to efficiently mitigate default risk and fraud by using machine-learning technology. The company has worked towards a fully online experience where customers can apply on Avant’s website. This eliminates the need for physical branches, but also is able to simplify the borrowing process, with the bulk of its employment verification and funding done over the internet. In April 2015, Avant launched the Avant Institutional Marketplace with global alternative asset manager Kohlberg Kravis Roberts, Victory Park Capital, and Jefferies as lead investors. The $400 million forward-flow financing arrangement enables institutional investors to purchase loans originated through the Avant technology platform and benefits Avant by diversifying funding sources.
After graduating from the Y Combinator startup program in 2012, Sun and Zhang looked to build their business, Debteye, a platform designed to help individuals manage their debt by making informed decisions based on their unique financial situation. With no income, Sun sought a personal loan at a traditional brick-and-mortar establishment. Sun found the process of applying for and obtaining a loan frustrating and time-consuming. This, along with Sun and Zhang’s Y Combinator venture, became the inspiration for what became Avant. As former interns of Goldstein’s at Enova, Sun and Zhang saw an opportunity to partner with the Chicago entrepreneur in December 2012 and built a product that made borrowing a more streamlined process. The startup set up its headquarters in Chicago where it raised an initial $1 million in seed funding. As of April 2015, Avant has raised over $1 billion in funding and has grown from its original three founders to over 650 employees.
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