NEW YORK, April 30, 2012 /PRNewswire via COMTEX/ — On Deck, the technology platform that connects Main Street directly to capital, announced today that its founder and former chief executive officer Mitch Jacobs has been named co-chairman of the “One in Three” Leadership Council, a major non-profit initiative of the Association for Enterprise Opportunity (AEO). The council’s goal is to create new jobs by reaching 1 million microbusinesses throughout the U.S.
The “One in Three” initiative is rallying non-profit community lenders and business service providers to more efficiently serve even the smallest borrower. The current U.S. financial system lacks the infrastructure and technology to effectively serve microbusinesses (companies with five or fewer employees). Microbusinesses make up almost 90 percent of the nation’s businesses and statistics show that if one in three microbusinesses hired an additional employee, the U.S. would be at full employment.
AEO will announce the new initiative on Wednesday at its national conference, “The Power of Microbusiness.”
“I’m very excited. This is a rare opportunity for me to continue working on the massive problem of creating access to capital for Main Street and microentrepreneurs through the nation’s non-profit infrastructure,” said Mitch Jacobs.
Additionally, on Monday, Jacobs will moderate a panel at the prestigious Milken Global Conference. The panel: The New Frontier of Credit: How Technology Can Improve Access to Capital will address how technology today is changing the lending landscape of the U.S.
The panel features some of the leading entrepreneurs in Financial Technology who will evaluate the opportunities presented by advancements in technology as well as the political, financial and systemic obstacles to innovation. The panel includes: James Gutierrez, Founder of Progreso Financiero, member of AEO’s Board of Directors, Matt Harris, Managing Director of Bain Capital Ventures, On Deck Board Member, Renaud Laplanche, CEO of Lending Club, Douglas Merrill, Founder and CEO of ZestCash and Chris Reilly, Senior Associate of TechPar Group.
Jacobs is a serial entrepreneur committed to serving Main Street business owners since the launch of his first company in 1993, while still in college. In 2007 he launched On Deck to create a more efficient system to deliver capital to small businesses nationwide. In his current role as co-chairman of the “One in Three” leadership council, Jacobs stated that he remains “committed to serving the small business population, the lifeline of our economy, which will drive the nation’s economic rebound.”
On Deck has delivered over $200M to small businesses nationwide, and continues to hit major milestones in innovation. On Deck’s underwriting and servicing platform will power a key component of the “One in Three” initiative, providing an efficient method for AEO and its partners to deliver capital to small businesses.
About On Deck
Launched in 2007, On Deck Capital uses data aggregation and electronic payment technology to evaluate the financial health of small businesses and to efficiently deliver capital to a market underserved by traditional bank loans. Through the On Deck Capital platform, millions of small businesses can obtain affordable loans to meet their daily operating and long term goals. The company’s proprietary platform looks deeper into the health of small businesses, focusing on the overall business performance, rather than the owner’s personal credit history. The On Deck system also provides a critically needed mechanism for commercial institutions to efficiently reach and serve the historically underserved Main Street small businesses market.
On Deck Capital is financed by some of the nation’s leading venture capital firms, including SAP Ventures, Contour Venture Partners, First Round Capital, Khosla Ventures, RRE Ventures and Village Ventures.
The Association for Enterprise Opportunity (AEO) is the voice of microbusiness in the United States. For two decades, AEO and its more than 400 member organizations have helped millions of entrepreneurs contribute to economic growth while supporting themselves, their families and their communities. AEO members and partners include a broad range of organizations that provide capital and services to assist underserved entrepreneurs in starting, stabilizing and expanding their businesses. Together, we are working to change the way that capital and services flow to underserved entrepreneurs so that they can create jobs and opportunities for all. To learn more about AEO or the One in Three Alliance, please visit www.aeoworks.org.