Tech firm LendingStandard raises $600K, lands big client
January 5, 2017 | Meghan LeVota
Kansas City-based tech firm LendingStandard announced Thursday that it’s closed on an angel capital round of $600,000.
CEO Andy Kallenbach said he’s pleased with the direction of the startup, which created software for multi-family lender organizations. Kallenbach added that he’s excited by what opportunities the financing affords LendingStandard.
“This investment will allow us to develop new targeted multifamily product solutions that will differentiate LendingStandard in the marketplace,” Kallenbach said. “Our early 2017 plans now include an additional, more substantial, investment round that will allow us to scale the business, add valuable team resources and to serve as the catalyst for new client and revenue growth.”
LendingStandard is a software-as-a-service platform on which multi-family lender organizations can receive and collaborate on documentation required to finance a commercial loan transaction. The platform helps cut about two months of work off the lending process thanks to collaborative tools and checklists that reduce errors and result in less expensive legal fees.
In other words, LendingStandard is reducing paperwork for an industry that has been stuck in the 80s. Kallenbach said that the paperwork often creates a struggle for multi-family lenders to complete, and frequently spurs additional problems.
“You may think that ‘it’s just a checklist, why can’t people just follow it?’ [about the paperwork,]” Kallenbach mused. “But, the problem is that everything is just so tedious, we’re talking over 100 different exhibits necessary for just one loan. “
Lending Standard in 2016 snagged Berkadia — the largest multi-family lender company in the United States — as a client.
“They are the 500-pound gorilla,” Kallenbach said. “I’m grateful to be working with the titan of the industry.”
After being located in downtown Kansas City for a year, LendingStandard moved to the Heartland House in Kansas City Startup Village last year. Kallenbach said the new location has made him feel at home in the community, adding that he loves what he does.
“I love being able to provide solutions to people doing tedious work and trying to make their job easier,” Kallenbach said. “I think a lot of satisfaction in our business has been able to help lenders do their job better.
In 2015, LendingStandard raised nearly $500,000. The startup also took part in the University of Missouri-Kansas City’s E-Scholars program and is a graduate of SparkLabKC.
2017 Startups to Watch
stats here
Related Posts on Startland News
Lenexa-based Aloe soothes health insurance enrollment pains with human touch
A patient’s “wow” moment shouldn’t be when he or she opens a medical bill and discovers procedures that unexpectedly aren’t covered by insurance, said Andrew Belt, co-founder of Aloe. “People are frustrated — frustrated because they don’t understand how their coverage works or what’s included, and it doesn’t seem like anyone they talk to understands,”…
LendingStandard plans innovation upgrade with $2.5M investment from Flyover Capital
An investment in innovation has landed Kansas City-based LendingStandard $2.5 million in investment funds following the close of a Series A funding round led by Flyover Capital, CEO Andy Kallenbach said. “These are folks that are well-known in Kansas City and have had software businesses in the past, and that’s a really rare combination,” Kallenbach…
Don’t just play the game: MECA Challenge urges students to innovate ‘school of the future’
Challenging Kansas City students to envision “the school of the future” will usher in a paradigm shift wherein teens can see themselves as customers of school, said Katie Kimbrell optimistically. “[Students] don’t even think, ‘Oh, I could rethink this whole thing that I’m experiencing,’ and choose — or even demand — something different,” said Kimbrell,…
KCultivator Q&A: Kyle J Smith talks serious work, socks with sandals, pickled pig brains
Editor’s note: KCultivators is a lighthearted profile series to highlight people who are meaningfully enriching Kansas City’s entrepreneurial ecosystem. The KCultivator Series is sponsored by WeWork Corrigan Station, a modern twist on Kansas City office space. A place to live, work, and play — three ingredients for a new life, said Kyle J. Smith, founder…