
Affirm Raises $100M, Bucking the ‘Down Round’ Trend - jetru
http://www.nytimes.com/2016/04/13/technology/affirm-raises-100-million-bucking-the-down-round-trend.html?_r=0
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a_small_island
Article says $800mm valuation with the new round, but then says they did not
release valuation. Also, almost $500mm raised with 800mm valuation? Can't be
right.

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bigredtech
Affirm has taken on a lot of debt funding as opposed to equity funding. Partly
because they are in the business of issuing loans and paying equity for the
loans would be silly for founders/investors/employees.

The total amount of money raised is probably < $100mm in pure equity, and the
valuation is probably a favorable $800mm when fudging the numbers.

With a recent WSJ article citing that 43% of student loan borrowers are
currently not paying back debt, and with Affirm largely trying to issue loans
to that "millenial" market, we will see how this high risk lending plays out.

