Andreessen, Eldridge Value Cross River Bank at Over $3 Billion

(Bloomberg) -- Cross River Bank, a regional lender that serves some of the biggest U.S. financial-technology startups, is close to a deal to raise more than $600 million, giving the company a valuation of more than $3 billion, people with knowledge of the matter said.

Todd Boehly’s Eldridge Industries and Andreessen Horowitz are poised to co-lead the funding round, which is set to include participation from T. Rowe Price Group Inc. and Alex Sacerdote’s Whale Rock Capital Management LLC, said some of the people, who asked not to be identified discussing private talks.

A representative for Fort Lee, New Jersey-based Cross River declined to comment, as did spokespeople for Eldridge, T. Rowe and Whale Rock. Andreessen Horowitz didn’t immediately respond to a request for comment.

Cross River, led by founder and Chief Executive Officer Gilles Gade, offers fintech startups loan-origination services for marketplace lending platforms, payment solutions and financing options, among other services. A New Jersey state-chartered bank insured by the Federal Deposit Insurance Corp., Cross River has originated more than $55 billion in loans since its 2008 founding, according to its website.

The lender’s partners include Coinbase Global Inc., Affirm Holdings Inc., Stripe, Upstart Network Inc. and Rocket Loans, the website shows. 

In 2018, Cross River raised about $100 million in a funding round led by KKR & Co. that included participation from investors including CreditEase, LionTree Partners, Ribbit Capital, Battery Ventures and Andreessen Horowitz. In 2020, the company said its parent had issued $106 million of subordinated notes that would provide it with “opportunistic capital” to fuel strategic growth plans.

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