Cross River Bank Said to Eye $2.5 Billion Valuation in New Round

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Cross River Bank, a regional lender that works with some of the biggest U.S. financial-technology startups, is in talks to raise fresh funding at a valuation of $2.5 billion or more, according to a person with knowledge of the matter.

The Fort Lee, New Jersey-based company, advised by FT Partners, is in early discussions with prospective suitors about raising roughly $200 million, the person said. Terms of the funding round aren’t finalized and could change.

Representatives for Cross River and FT Partners didn’t immediately respond to requests for comment.

Earlier this year, Cross River -- led by founder and Chief Executive Officer Gilles Gade -- agreed to acquire data and risk analytics firm Synthetic P2P Holdings Corp., better known as PeerIQ. It has originated more than $46 billion in loans since its 2008 inception, and worked with over 375,000 businesses to secure Paycheck Protection Program loans, its website shows.

Cross River is a New Jersey state-chartered FDIC-insured bank. In 2018, it raised about $100 million in a funding round led by KKR & Co. that included participation from investors including CreditEase, Lion Tree Partners, Ribbit Capital, Battery Ventures and Andreessen Horowitz. In 2020, the company said its parent had issued $106 million of subordinated notes that it earmarked as “opportunistic capital” to fuel strategic growth plans.

Its clients have included Affirm, Best Egg, Upstart, RocketLoans, Coinbase and Wise, formerly known as TransferWise, Cross River has said. In June, the company said it had formed Cross River Digital Ventures, a venture capital arm, which intends to back companies in lending, payments, investing and fintech.

“Cross River already powers some of the largest companies in fintech and this new endeavor will help us identify and make additional strategic investments,” Gade said at the time.

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