International Credit History Expansion to Serve More Than 50% of US Immigrant Countries of Origin
Nova Credit, the premier cross-border consumer credit reporting startup, announced that it raised $50 million in equity financing. Kleiner Perkins led the investment and was joined with major participation from Canapi Ventures and existing investors Index Ventures, General Catalyst and Nyca Partners. Sound Ventures, a venture capital fund founded by Ashton Kutcher and Guy Oseary, also participated in this round, with support from baseball legend Alex Rodriguez and U2 guitarist the Edge. The new round of financing will be used to significantly expand Nova’s global reach and mission to support newcomers from around the world.
Today, immigrants drive 55% of US population growth, a figure that is projected to grow to 80% by 2050. Nova Credit is building the future of global finances by enabling these newcomers to share international credit history from 11 countries including Australia, Canada, India, Mexico and the United Kingdom with banks, lenders and telecommunications companies.
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Through its Credit Passport technology, Nova Credit translates foreign credit data into a US-equivalent score and report in a format familiar to American underwriters. Nova Credit’s real-time delivery of this data enables financial institutions to instantly serve newcomers to the United States faster and more fairly. Newcomers who apply for credit products powered by Nova Credit technology are able to get approved for products such as credit cards and loans, instantly.
“The world has become increasingly globalized, with people moving around the world at an accelerating rate, yet credit history has been trapped within national borders. Nova Credit is changing that by enabling millions of newcomers who have hard-earned credit abroad to access financial services more equally in the US,” said Misha Esipov, Nova Credit’s CEO. “Migration is an incredibly vulnerable period of transition and through the Credit Passport we’ve made that experience more safe and welcoming. Nova Credit believes in a world beyond borders to enable newcomers to arrive and thrive.”
Ilya Fushman, Partner at Kleiner Perkins, said: “Credit is fundamental to economic success, but today’s systems and infrastructure have not kept up with an increasingly mobile world. Nova Credit is democratizing access to credit globally and we’re delighted to lead the Series B.”
Gene Ludwig, Managing Partner of Canapi Ventures, said: “We’re thrilled to participate in Nova Credit’s Series B round. In a competitive financial services industry with shifting demographics, developing a strategy to attract the growing newcomer segment has become a strategic necessity for banks to defend and grow market share. Nova Credit stands out as the only enduring solution to financial access for the millions of newcomers who come to the US each year. They’ve assembled an exceptional, mission-driven team that has what it takes to bring systemic change to life.”
