An Overview of GreenSky Credit Services

Fintech company GreenSky has quickly become one of the most successful in its industry. The company recently raised $50 million at a $3.6 billion dollar valuation, and it’s business model allows it to make money without taking on a lot of risk. It is also one that can be scaled in the future as the company moves from focusing on home renovations to other industries.

How GreenSky Works

The contractors that are affiliated with GreenSky are the ones that do most of the marketing to consumers. After a loan is made, the company gets 6 percent of the initial balance from the contractor, but the company is not the one that actually makes the loan. Instead, one of its partner lending institutions will provide the loan proceeds to the borrower. The lending partners then pay GreenSky 1 percent of the balance for the right to service that loan.

Who Does the Company Partner With?

For the most part, GreenSky makes loans to homeowners who want to get a new roof, replace their siding or make other general repairs or upgrades. However, the company plans on expanding its offerings to other professionals who want to offer financing to their customers. According to one of the company’s early investors, getting a contractor to use a relatively new financing product can be difficult. However, once the contractor is onboard, he or she usually won’t stop using it unless there is a compelling reason.

Who Is Eligible for a Loan?

For the most part, borrowers have to have a reasonably high credit score and steady source of income to get approved for financing. Unlike other fintech companies, GreenSky doesn’t use social media data or other data to make a lending decision. This is because the loans have to be acceptable to the banks who are ultimately going to fund them.

$21 Million in Funding Ensures ClassDojo Growth

ClassDojo has certainly impressed investors with what it’s been able to bring to classrooms everywhere. After their last round of funding, this educational startup managed to draw in more than $21 million from interested parties.

The ClassDojo platform is one that focuses on communication. By connecting teachers to the parents of students, ClassDojo has opened a channel of communication that makes classrooms a virtual space, allowing parents to be better informed on their children’s school day and giving teachers a secure channel to inform those same parents of all that goes on in the school.

This has effectively made the traditional face-to-face arrangements of meetings between parents and teachers obsolete, and that’s a good thing for students. With communication open and constant teachers can better inform parents on how their children are performing in class, where they need assistance and how to go about helping them excel. This can radically transform education by providing support in class and at home that is more conducive to learning, as opposed to waiting for scheduled meetings a couple of times in the school year so that everyone can get on the same page.

Sam Chaundhary and Liam Don, ClassDojo’s co-founders, seem to understand the opportunity their platform presents to school environments. So, they’re taking their millions in funding to expand their existing staff and broaden the capability of their platform.

ClassDojo doesn’t have a monopoly on tech solutions for classroom environments. But while most tech companies have focused on ways to supplement instruction with technology, few have focused on the under serviced sector of classroom communication. This has allowed ClassDojo to be put in use in ore than 85,000 schools across North America. That kind of brand recognition has made it hard for competition to really disrupt their growth. ClassDojo’s taking this position of recognition seriously and are working to address the only real lingering criticism of their service–privacy concerns over data that may implicate children. It’s on the list of things they’ll address moving forward with their new funding.

Since 2011, ClassDojo has collected more than $31 million in funding to provide public and private schools with a technological solution to their lapses in communication between faculty and parents.

In time ClassDojo hopes to monetize its platform, allowing their services to broaden and meet more challenges schools face. For now, they have no intentions from moving from the education market.


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