SoftBank just led a $1 billion round of funding for Social Finance

It looks like investors are still very, very interested in online lenders. For proof of this, you need look no further than San Francisco, where a local startup by the name of Social Finance just completed a $1 billion round of funding led by Japan’s SoftBank, which brings its lifetime funding to a total of $1.42 billion. Social Finance offers borrowers and lenders dealing in loans a way to connect with each other without having to go through banks, with a heavy focus on offering much lower rates than traditional lenders. 

Social Finance Inc. raised $1 billion, showing that there’s still deep interest in a new crop of online lenders despite market volatility and the lackluster stock performance of the industry’s biggest player. Japan’s SoftBank Group Corp. led the fundraising round, according to a statement Wednesday. Affiliates of Dan Loeb’s Third Point, Wellington Management Co., Institutional Venture Partners, RenRen, Baseline Ventures and DCM Ventures also participated. The final amount raised surpassed the $800 million proposed two months ago, before August’s global stock rout. The money will help Chief Executive Officer Mike Cagney pursue his vision of making SoFi the go-to financial services firm for “high-achieving professionals.” The venture started four years ago by helping graduates of top-tier universities refinance student loans at lower rates. Since then, SoFi has broadened offerings to include personal loans and mortgages, and Cagney has said he’s interested in providing wealth-management services.