AutoFi, an online auto finance startup that employs a marketplace lending model, has been named the winner of this year’s PitchIt @ LendIt – an annual competition for startups “innovating within the online lending and fintech space.”
Jonathan Palen, cofounder and president of AutoFi, pitched the company’s concept, an automated platform that allows dealers to sell cars online, while institutional capital provides the money for the loans, on Tuesday.
“The number of test drives that people take are down, and dealer visits are down to one, which is typically for the pickup of the car or a test drive,” Palen told LendIt attendees at the auto finance panel earlier that day. “So we think that by applying technology first, dealers can realize the opportunity that exists online.”
Palen will be speaking at Auto Finance Innovation 2016 about the opportunities for auto finance in marketplace lending. The inaugural event will take place on May 11 in Fort Worth, Texas.
The startup’s Chief Risk Officer Jim Hinds will also be speaking at the upcoming Auto Finance Risk & Compliance Summit on May 10, also in Fort Worth. Previously Hinds, whom Palen refers to as AutoFi’s “Secret Sauce,” served as the Head of Risk and Analytics at Credit Acceptance Corp. for 12 years. “Jim does not lose money,” Palen enthusiastically told the crowd on Tuesday, prior to the company’s win.
AutoFi was one of eight finalists that competed for the chance to pitch to a panel of judges from the venture capital community. Applicants had to have a working prototype with customer interaction, have secured less than $5 million in funding, and have at least two full-time founders, according to a press release. LendIt received 92 applications for this year’s PitchIt@LendIt competition.
Learn more about the tech and disruption in the industry at Auto Finance Innovation 2016, May 11 in Fort Worth, Texas. Visit www.autofinanceinnovation.com and to learn more about the Auto Finance Risk & Compliance Summit, visit www.afrcs.com
