Cerebro Capital (“Cerebro”), a digital commercial loan marketplace that revolutionizes how corporate credit facilities are sourced and managed, announced it has successfully closed its second round of venture capital. Co-led by Ulu Ventures and Grotech Ventures, it closed March 26, 2020. Sterling Partners returned as an investor, and Inner Loop Capital and Point Field Partners also participated in the round.
Designed for middle market corporate borrowers and lenders, Cerebro addresses two key components of the commercial loan process: sourcing corporate loans and managing loan covenant compliance. The capital will be deployed to further scale Cerebro’s online loan marketplace and broaden its capacity to streamline the placement of corporate debt transactions. In the wake of COVID-19 and the creation of the Main Street Loan Program (“MSLP”) and Paycheck Protection Program (“PPP”), data-driven loan processes are needed more than ever.
Connected to over 650 bank and non-bank lenders, the platform saw the number of inquiries surge, and propelled the organization to triple digit growth in the first quarter of 2020. As the lending landscape becomes more complex and competitive, it’s important for borrowers to run systematic processes to ensure they understand the full spectrum of capital available to them. Cerebro does just that.
“We are thrilled our platform is being recognized across the country with prominent west coast and east coast investors, in the form of this new capital raise,” said Bjonerud. “We exceeded our expectations in the dollars raised and at a critical juncture in our growth path as many of our customers navigate a volatile post COVID-19 economy. With this capital, we will continue to make it easier and faster to receive great terms on corporate loans including the new MSLP and PPP loans.”
Cerebro has seen explosive growth since its launch in October 2017. Corporate borrowers have used the platform to run over $740 million in loan RFPs, and in the first quarter of 2020, borrowers used the platform to predict structure and terms for loans totaling over $800 million. Cerebro has also diversified its lending sources beyond commercial banks to include asset-based lenders, mezzanine funds, business development companies, and venture debt lenders.
With a keen eye on technology, Cerebro has deployed artificial intelligence technologies to suggest optimal deal structuring and match borrowers to lenders best suited to provide capital. It has also expanded its platform’s capacity to automate covenant compliance to accelerate growth and attract users across public companies, REITs, lenders and individual corporate borrowers. Cerebro’s data driven approach to predict and access loan markets is often the difference between growth or stagnation for its customers.
“The mid-market credit space is massive and an important part of how the US economy functions,” said Clint Korver, Managing Director at Ulu Ventures. “It’s a market often bound by geography and inefficient for borrowers and lenders. We know Cerebro has the potential to unlock significant efficiencies and savings on both sides of the equation, making the platform more powerful, and its future that much brighter.”
About Cerebro Capital: Powered by 650 banks and non-bank lenders and state of the art technology, Cerebro Capital (“Cerebro”) is an online platform that allows middle-market borrowers to analyze, manage, and source credit facilities. Working with finance and technology experts, Cerebro has created a holistic corporate loan management solution designed to revolutionize the way borrowers, lenders, intermediaries and stakeholders manage corporate debt.
To learn more about Cerebro, visit, https://www.cerebrocapital.com/, and to better understand corporate debt structuring options, visit https://www.cerebrocapital.com/predict-loan-terms/ to predict available loan terms.
About Ulu Ventures: Ulu Ventures is an early stage venture firm investing primarily in enterprise IT startups. Ulu’s investment choices are data driven which helps reduce cognitive bias. Ulu’s portfolio is quite diverse by industry standards, nearly a third are women founders and a quarter are minorities. The firm has invested in more than 130 companies.
About Grotech Ventures: Founded in 1984, Grotech seeks innovative, early-stage investments across the IT landscape and continues to invest and add value throughout the life cycle of each portfolio company. The firm has a strong combination of financial backing, industry relationships, and deep domain and operational expertise to accelerate growth. With more than $1.4 billion in committed capital, Grotech supports early-stage companies through investments starting at $500,000.
About Sterling Partners: Sterling Partners is a diversified investment management platform. Founded in 1983, the firm was started by four young entrepreneurs, who went on to build one of Chicago’s most prominent private equity firms. Today, the firm has expanded beyond its strong private equity practice into a number of other investment strategies. Sterling invests in a wide variety of companies in various stages of growth – from early stage, high-growth businesses to mature, profitable companies, and has nearly a dozen investments on a deal-by-deal basis, including Cerebro Capital.