Cumulus Funding, a Chicago, IL-based consumer finance company, raised over $31m in a Series A equity round and in debt financing.
In details, this included $6m in equity funding and a $25m debt financing facility.
The equity round was led by Continental Investors LLC with participation from new investors HC Technologies, D-W Investments, Bridge Investments and Service Provider Capital, as well as existing investors. In conjunction with the funding, Jeff Jones, Managing Director at Stephens Inc., and Jessica Sohl, General Counsel of HC Technologies, joined Cumulus’ board of directors.
The company will use the funds to expand operations into new states.
Led by CEO Nathan Popkins, Cumulus Funding provides Income Share Agreements (ISAs) to individuals seeking more flexible consumer finance alternatives. Its equity-like Income Share Agreement provides customers with funds today in exchange for a future investment return that is based upon a percentage of their income for a fixed period of time.
Customers can receive between $1.5k and $10k in exchange for returns based on a specified percentage of their income – never more than 10%.
To date, the company has provided Income Share Agreements to over 500 customers.