Petal, a NYC-based credit card startup, raised a $13m round of Series A financing.
The round was led by Valar Ventures, with participation from Third Prime Capital, RiverPark Ventures, and The Social Entrepreneurs’ Fund and existing investors Brooklyn Bridge Ventures, Afore Capital, Rosecliff Ventures, Great Oaks Venture Capital, New Ground Ventures, Abstract Ventures, Ride Ventures, Story Ventures, and The Gramercy Fund.
The company, which has also hired Shiri Wolf, a longtime senior counsel with the Consumer Financial Protection Bureau (CFPB), as its general counsel, will use the funding to expand its team and bring its product to consumers who have signed up for the waitlist on petalcard.com.
Led by Jason Gross, CEO and co-founder, Petal is a credit card startup has developed “Cashflow Underwriting”, a new technology platform that analyzes, in real-time, an individual’s digital financial record.
Cashflow Underwriting is different from traditional credit scoring, using a mixture of machine learning and common sense to analyze an individual’s digital financial record. Instead of relying solely on an applicant’s borrowing history, Petal incorporates critical financial data elements into the credit decision, including how much an individual makes, saves, and spends over time, as well as the bills they actually pay each month—yielding a fairer and inclusive picture of their financial health.