Reston fintech startup closes $400M financing round

Quantum Lending Solutions has closed a $400 million financing round, the Reston-based financial tech startup announced Tuesday.

The transaction included a warehouse line with an initial $250 million commitment, corporate debt and equity, according to a news release. A “global asset-based private credit firm” led the round, with debt participation from New York-based investment firm Atlas SP Partners and equity participation from Pennsylvania-based investment adviser LL Funds.

Quantum’s artificial intelligence-based platform helps banks, marketplaces and tech platforms improve credit decisions and provide long-term credit to small and medium-sized businesses. The company will use the financing secured in the recent round to continue scaling the lending infrastructure platform.

“Quantum has grown significantly in recent years as we expand to meet the demand of banks and technology platforms looking to extend responsible long-term credit to their customers,” Quantum CEO Mickey Konson said in a statement. “We see this trend accelerating as we launch our recently rebuilt AI-based platform into the market.”

A merger of financial tech companies Fundation, Camino Financial and the small and medium-sized business operations team from Amount created Quantum two years ago. The company has since raised more than $50 million of equity capital, doubled its originations and decreased losses by more than 50%, and tripled its lending capacity.

Raj Mundy, LL Funds partner and Quantum’s board chairman, said in a statement: “As both an equity investor and as chairman of the board, I’ve seen firsthand how the team has rebuilt the company for the AI era while delivering consistent growth. We’re excited to continue supporting their mission to provide banks and platforms with the infrastructure they need to serve their business customers responsibly and at scale.”

Macquarie Capital advised Quantum in the financing.