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 said of Flyover Capital.
LendingStandard — a series of software based products and services, developed to create efficiency in the multi-family lending business — is the fund’s 16th, early-stage investment since it was launched in 2015. Flyover’s portfolio also includes Zoloz, Risk Genius and Site 1001.
“The other piece [to working with Flyover Capital] is this is a local capital source that has a decent number of partners, that all have software and technology expertise,” Kallenbach added.
The lead investor was impressed by the founder and his team’s tenacity, said Keith Molzer, managing partner of Flyover Capital.
“They are addressing a big pain point within the HUD space and are on track to be a major player supporting the large and ever-growing multi-family lending space,” Molzer said.
An unspecified number of undisclosed, secondary investors also took part in the round, a LendingStandard release explained.
Following the close of the funding round, the cash infusion provided by the investment will enable LendingStandard to look toward scaling, Kallenbach said.
“This product that we’ve built, we’re looking to continue that innovation — to help more multi-family properties get better financing,” he said. “There’s 2.5 million properties across the United States, many of which do not get good financing terms and I think that there’s a lot that we can do to change the way the market operates and get those properties appropriate financing and really kind of help meet housing needs across the U.S.”
Additionally, funds will allow LendingStandard to continue modernizing the multi-family lending space, improve the company’s LOS platform, and expanding its executive team. The company recently welcomed Chris Weber, chief technology officer, and Craig Hughey, vice president of product, Kallenbach added.