Non-bank lender Pepper has committed US$1.25m in equity funding to a US based, global innovation network.
Founded in February 2013, and based in Washington DC, 1776 looks to foster start-ups seeking to disrupt regulated fields such as education, energy and sustainability, healthcare, transportation and city planning.
Pepper’s investment will allow the non-bank access to the business opportunities generated by 1776’s start-up companies, as well as the mentoring services provided by 1776 encompassed in a 5 year partnership agreement.
Pepper’s Co Group CEO, Mike Culhane said he believes the next big disruption in financial services is likely to come from outside the financial services industry.
“Through our investment in 1776, we are looking to support start-up businesses, and in turn, gain access to new and innovative ideas from a range of industries, not just financial services. The idea that the next ‘big thing’ in financial services will come only from another financial services player deserves to be challenged.”
Pepper’s Co Group CEO, Patrick Tuttle said Pepper was founded on innovation itself.
“At Pepper, we embrace innovation and digital technologies. Our business was founded on the idea of satisfying an unmet need through innovation. In 2001, we realised mortgages did not have to come from banks or other traditional lenders. Pepper secured wholesale funding from Australian banks, applied our own proprietary credit assessment skills and offered home loans to a broad range of customers underserved by traditional lenders.”
In return for committing funding, Pepper’s CoGroup CEO, Mike Culhane will join the board of 1776.
Pepper is 1776’s first Australian financial investor.