$UPST Upstart Holdings Inc Deep Dive and 2024 Outlook
The "AI based lender" is still in a long term slump
Upstart Holdings is an AI lending platform that partners with banks and credit unions to provide consumer loans using non-traditional variables like education and employment to predict creditworthiness. The founding team includes Dave Girouard, former President of Enterprise Google; Paul Gu, a Thiel Fellow; and Anna Counselman, a former Google employee.
Upstart developed an income and default prediction model to determine borrower creditworthiness, considering education, work history, and traditional underwriting criteria. The company launched in 2012 with an Income Share Agreement product, pivoting to a personal loan marketplace in 2014. Upstart has raised over $120 million from investors like First Round Capital, Kleiner Perkins, Google Ventures, and The Progressive Corporation. I
The big questions for Upstart
How will Upstart navigate the challenging macroeconomic environment and constrained credit availability?
Can Upstart expand into new markets such as mortgages and auto loans?
Can Upstart continue to grow its loan volume and revenue while also improving profitability and reducing losses?
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