Avant

Avant, LLC is a privately held financial technology company founded in Chicago in 2012 by Albert "Al" Goldstein, John Sun, and Paul Zhang. It was formerly known as AvantCredit. The company emerged from the founders' effort to make consumer borrowing more accessible and less dependent on the slow, branch-based processes associated with traditional lenders. Sun and Zhang had previously developed Debteye, a Y Combinator-backed concept intended to help people manage debt. Their own difficulty obtaining a personal loan helped shape the product direction that became Avant, and their prior relationship with Goldstein, who had employed them at Enova, led to the founding team coming together. Avant initially positioned itself as a mid-prime lender, serving consumers who might not receive attractive terms from conventional banks but who were considered less risky than the highest-risk non-prime segment. The company issued its first unsecured personal loan in early 2013. Its core proposition was a fully online application and servicing experience supported by proprietary software, algorithms, machine-learning methods, and analysis of consumer information. These tools were intended to estimate credit risk and customize the amount, interest rate, and repayment term offered to each borrower. By moving most application, verification, and funding activity online, Avant sought to reduce operating friction and avoid the cost of a physical branch network. The business expanded rapidly during its first several years. It initially offered loans in 16 U.S. states and later expanded its U.S. lending footprint to 46 states. In October 2013, it began international expansion into Canada and the United Kingdom. Between 2012 and 2015, loans originated through the platform exceeded $1 billion, while investors contributed approximately $1.4 billion to support the business and its lending activities. Reported backers included August Capital, Tiger Global Management, Victory Park Capital, KKR, Jefferies, and other institutional and venture investors. In 2014, the company raised $225 million in equity financing, including participation from Tiger Global, Peter Thiel, and KKR. Avant broadened its consumer-finance ambitions in February 2015 by acquiring ReadyForZero, a debt-management application founded by Rod Ebrahimi and Ignacio Thayer. The transaction added a Los Angeles office and was presented as supporting Avant's goal of lowering the costs and barriers associated with borrowing. ReadyForZero's consumer-facing credit-score and debt-planning tools were later scheduled for closure, with user access ending in November 2016. The company also developed institutional funding infrastructure. In April 2015, it announced the Avant Institutional Marketplace, supported by KKR, Victory Park Capital, and Jefferies. The reported $400 million forward-flow arrangement allowed institutional investors to purchase loans originated through Avant's technology platform, giving the lender a broader funding base and connecting its online underwriting system with large-scale capital providers. Avant received substantial startup and financial-technology recognition during its expansion period. In 2015, Forbes placed it sixth on its list of America's Most Promising Companies and included it among its Next Billion Dollar Startups. Paul Zhang was recognized by Inc. in its 30 Under 30 program, while Al Goldstein received the EY Entrepreneur of the Year Midwest award. The company also received awards including the Moxie Award for Breakthrough Digital Company of the Year and an American Business Award for Company of the Year in Financial Services. The business later faced regulatory scrutiny. In April 2019, Avant agreed to pay $3.85 million to settle Federal Trade Commission allegations concerning deceptive loan-servicing practices and alleged violations of the Telemarketing Sales Rule and the Electronic Fund Transfer Act. Avant did not admit or deny the allegations in the settl…

Avant was established in Chicago in 2012 by Al Goldstein, John Sun, and Paul Zhang. Sun and Zhang had worked on Debteye, a Y Combinator-associated debt-management concept, after experiencing the difficulty of obtaining personal credit through conventional channels. Their earlier professional connection with Goldstein at Enova helped produce the founding partnership. The new company raised an initial seed round of $1 million and built an online lending model intended to make consumer borrowing faster and more individualized. The company began issuing unsecured personal loans in early 2013. Its underwriting system combined conventional consumer data with algorithms, machine learning, and analytical techniques to assess default and fraud risk. The system was designed to generate customized loan amounts, rates, and terms rather than rely solely on standardized bank processes. Avant initially operated in 16 U.S. states, later expanding to 46 states, and entered Canada and the United Kingdom in October 2013. Avant's early growth was supported by significant external capital. From 2012 through 2015, the platform originated more than $1 billion in loans and attracted approximately $1.4 billion in investor contributions, according to the reference material. Investors and financing partners included August Capital, Tiger Global Management, Victory Park Capital, KKR, Jefferies, and others. In 2014, the company reported a $225 million equity financing round involving Tiger Global, Peter Thiel, and KKR. By April 2015, the business had grown from its three founders to more than 650 employees. In February 2015, AvantCredit acquired ReadyForZero, a Los Angeles-based debt-management application founded by Rod Ebrahimi and Ignacio Thayer. The acquisition expanded Avant's consumer-finance ambitions beyond loan origination and added a second office. ReadyForZero's credit-score and debt-planning features were later discontinued, with the service scheduled to become inaccessible to users in November 2016. Avant also worked to institutionalize the funding of loans generated through its technology. In April 2015, it launched the Avant Institutional Marketplace with KKR, Victory Park Capital, and Jefferies. The reported $400 million forward-flow arrangement enabled institutional investors to buy loans originated through Avant's platform and was intended to diversify the company's funding sources. During its rapid-growth period, Avant received recognition from Forbes, Inc., EY, the Moxie Awards, and the American Business Awards. Its expansion also brought regulatory exposure. In April 2019, the Federal Trade Commission announced a settlement under which Avant agreed to pay $3.85 million over allegations concerning deceptive loan servicing and alleged violations of telemarketing and electronic-fund-transfer rules. In February 2020, Avant announced that it had completed the spin-off of its SaaS financial-technology business as Amount. The available sources do not provide sufficiently current information to determine Avant's present management, ownership, website, financial position, or operational status.

1. 2020Amount spin-off completed

   Avant announces the completion of the spin-off of its SaaS financial-technology unit as Amount.

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2. 2019FTC settlement

   Avant agrees to pay $3.85 million to settle Federal Trade Commission allegations relating to loan servicing and consumer-protection rules.

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3. 2016ReadyForZero tools discontinued

   Avant schedules the closure of ReadyForZero's credit-score and debt-planner tools and deactivation of user accounts.

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4. 2015ReadyForZero acquisition

   AvantCredit acquires the debt-management platform ReadyForZero and adopts the Avant brand.

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5. 2015Institutional Marketplace launches

   Avant introduces a loan-purchase marketplace supported by a reported $400 million forward-flow financing arrangement.

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6. 2014Major equity financing

   Avant raises a reported $225 million in equity financing from investors including Tiger Global, Peter Thiel, and KKR.

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7. 2013First unsecured loan issued

   Avant begins issuing personal unsecured loans through its digital platform and initially operates in 16 U.S. states.

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8. 2013International expansion begins

   The company expands into Canada and the United Kingdom.

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9. 2012Avant is founded in Chicago

   Al Goldstein, John Sun, and Paul Zhang establish the company, initially known as AvantCredit, after developing an online consumer-lending concept.

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A digital, data-driven lender focused on streamlining personal borrowing for middle-market and non-prime consumers through online applications, automated underwriting, and customized loan terms.

• Avant personal loansUnsecured personal lending2013

  Avant's principal offering was an online personal-loan product aimed primarily at mid-prime and non-prime consumers. Applicants could apply digitally, undergo online verification, and receive loan terms generated through Avant's data-driven underwriting system. The platform evaluated consumer information with algorithms and machine-learning techniques to estimate risk and customize the loan amount, rate, and repayment duration.

• ReadyForZeroDebt management

  ReadyForZero was a debt-management application acquired by AvantCredit in 2015. Its tools included credit-score and debt-planning functions intended to help users monitor and manage outstanding obligations. Avant later announced that these tools would be shut down and user accounts deactivated in November 2016.

• Avant Institutional MarketplaceInstitutional loan financing2015

  Launched in 2015, the Institutional Marketplace connected loans originated through Avant's technology platform with institutional investors. Its reported forward-flow financing arrangement allowed investors to purchase pools or flows of loans, while providing Avant with a more diversified source of lending capital.

• AmountSaaS financial technology2020

  Amount was the name given to Avant's SaaS financial-technology business after it was spun off as a separate company. The separation was announced as completed in February 2020, but the available sources do not establish the detailed product portfolio or subsequent ownership of the new company.

• 2020Spin off AmountStrategy

  Avant separated its software-as-a-service financial-technology activities from its lending business.

  What changed. The SaaS unit was established as a separate company called Amount.

  Aftermath. The available material does not establish the subsequent operating performance or ownership structure of either business.

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• 2015Acquire ReadyForZeroM&A

  Avant sought to extend its consumer-finance mission beyond loan origination and address debt management.

  What changed. AvantCredit acquired ReadyForZero, a debt-management application, and brought its operations into the Avant organization.

  Aftermath. The acquisition added a Los Angeles office, but the acquired credit-score and debt-planning tools were later discontinued.

  Source
• 2015Create the Avant Institutional MarketplaceStrategy

  Avant needed to diversify the capital supporting loans originated through its online platform.

  What changed. The company launched an institutional marketplace with KKR, Victory Park Capital, and Jefferies, supported by a reported $400 million forward-flow arrangement.

  Aftermath. The structure allowed institutional investors to purchase platform-originated loans and gave Avant an additional funding channel.

  Forward-flow financing arrangement. $400 million (2015)

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• 2013Adopt an online, machine-learning-supported lending modelStrategy

  The founders sought to make personal borrowing faster and more accessible than the traditional branch-based process.

  What changed. Avant built a digital application and underwriting platform using algorithms, machine-learning methods, and consumer-data analysis to set individualized loan terms.

  Aftermath. The model supported rapid expansion across the United States and later into Canada and the United Kingdom.

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• 2019Federal Trade Commission loan-servicing settlementControversy

  The FTC alleged that Avant engaged in deceptive loan-servicing practices and violated provisions of the Telemarketing Sales Rule and Electronic Fund Transfer Act. Avant agreed to pay $3.85 million to resolve the matter.

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• 2020Avant completes spin-off of Amount

  Avant announced the completion of the separation of its SaaS financial-technology business into a new company named Amount.

  M&A
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• 2016ReadyForZero tools scheduled for closure

  Avant planned to discontinue ReadyForZero's credit-score and debt-planner tools and deactivate user accounts effective November 12, 2016.

  Other
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• 2015Avant acquires ReadyForZero

  AvantCredit acquired the debt-management platform ReadyForZero and subsequently operated under the Avant brand, adding a Los Angeles office and debt-management capabilities.

  M&A
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• 2015Avant launches Institutional Marketplace

  Avant introduced an institutional loan-purchase marketplace backed by a reported $400 million forward-flow financing arrangement involving KKR, Victory Park Capital, and Jefferies.

  Product launch
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• 2013Avant expands lending beyond the United States

  Avant expanded from its initial U.S. lending operations into Canada and the United Kingdom.

  Other
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1. Avant (company)
2. FTC settlement with Avant over loan-servicing allegations