THIS IS
UPSTART
Founded by ex-Googlers,

Upstart is the first lending platform to leverage artificial intelligence and machine learning to price credit and automate the borrowing process. Upstart has demonstrated unparalleled credit performance1 and the industry’s highest consumer ratings.2

In addition to its direct-to-consumer lending platform, Upstart provides technology to banks, credit unions and other partners via a “Software-as-a-Service” offering called Powered by Upstart.

$1B
in originations
3X GROWTH
expected in 2017
Lending is
centuries old,
Lending is centuries old,
but has changed little in recent decades. Almost all lenders use FICO-based models to decide who is approved for credit and at what interest rate. While simple and intuitive, these “scorecard” methods are limited in their ability to quantify risk.
More than
four in five
Americans
More than four in
five Americans

have never defaulted on a loan, yet less than half have access to prime credit.3

The implication is eye-opening: with a smarter credit model, lenders could approve almost twice as many borrowers, with fewer defaults.

Radial
AI/ML are upending
existing industries
and creating new ones. Whether self-driving cars, home assistants, or language translation, software that learns and improves on its own has moved from research labs to mainstream in just a few years.
Upstart is one of the first
to apply AI/ML to the multi-trillion dollar credit industry. Upstart goes beyond FICO, using non-conventional variables at scale to provide superior loan performance and improve consumers' access to credit.
The system
improves
constantly,
learning and optimizing in response to daily loan-level repayment and delinquency data.
Upstart has achieved separation.This chart demonstrates how different versions of Upstart’s model would have predicted performance of more than 50,000 actual Upstart loans compared to how FICO would have scored them. Each dot represents about 400 loans. Over time, Upstart’s machine learning model is better able to identify risk, creating separation between the small number of high risk borrowers (top left) from the low risk borrowers (bottom right). Scroll to see how Upstart’s model has improved over time.
The Upstart model is learning quickly,improving on its ability to identify creditworthy consumers. While the original model would have approved only 35 million Americans, the current model would approve more than 100 million, without a deterioration of credit.4
Num americans graph
Beyond credit scoring,automation and modern data science can rewire the verification process, allowing Upstart to approve an increasing fraction of loans nearly instantly.
Loans auto graph
Upstart's model is already achieving significantly lower loss rates than other platforms.
Loss rates graph
Virtually all lending
will be centered on AI/ML
Virtually all lending will
be centered on AI/ML
within a decade. While Upstart is focused today on the US consumer market, similar techniques can and will be applied to all credit markets.
Upstart has worked with
regulators since inception

to ensure it operates safely within the law.

AI/ML-based lending expands access to affordable credit by constantly finding new ways to identify qualified borrowers. Yet the model must avoid unlawful disparate impact, or statistical bias, that would be harmful to disadvantaged groups.

Upstart has demonstrated to regulators that its platform doesn’t introduce bias to the credit decision and has developed reporting procedures to ensure future versions of the model will continue to be fair. In September 2017, Upstart became the first company to receive a No Action letter from the Consumer Financial Protection Bureau (CFPB). The purpose of such letters is to reduce potential regulatory uncertainty for innovative products that may offer significant consumer benefit.

LEADERSHIP
Dave was formerly President of Google Enterprise and built Google's billion-dollar cloud apps business worldwide, including product development, sales, marketing, and customer support. He started in Silicon Valley as a Product Manager at Apple and was an associate in Booz Allen's Information Technology practice. Dave's career began in software development with the Boston office of Accenture. He graduated from Dartmouth College with an AB in Engineering Sciences and a BE in Computer Engineering. Dave also holds an MBA from the University of Michigan with High Distinction.
Paul pioneered Upstart's statistical models to predict income and employment. He has a background in quantitative finance and built his first algorithmic trading strategies on the Interactive Brokers API at the age of 20 (achieving a Sharpe of 2.03) and previously worked in risk analysis at the D.E. Shaw Group. During college, Paul led underwriting for two non-profit microlenders in the U.S. He has been recognized as one of Peter Thiel's 20 under 20 Fellows and Silicon Valley Business Journal's 40 under 40. Paul studied economics and computer science at Yale University.
Anna led Gmail Consumer Operations for 5 years as it scaled from 150 million to 450 million users and launched the global Enterprise Customer Programs team. She also held a variety of operations roles at McMaster Carr and several other startups. Anna graduated Summa Cum Laude from Boston University with a BA in Finance and Entrepreneurship. Anna received a White House Champion of Change award and was recognized as one of Silicon Valley Business Journal's 40 under 40.
Alison was an associate General Counsel at PayPal and managed the North America legal team responsible for supporting multiple business units on issues ranging from corporate strategy, general commercial matters, regulatory developments and compliance, consumer protection, online and mobile payments, and merchant payment acceptance. She was also the General Counsel of TSYS Prepaid, a pioneering prepaid payments processor. Alison holds a law degree from the University of Glasgow (in Scotland), and a Masters of Law from Columbia Law School.
Jeff joined Upstart after spending 6 years at Google. He launched and built the Google Apps for Education business, growing market share from zero to almost 70% in its first four years. Jeff spearheaded marketing efforts for Google Apps in Global 2000 accounts and led sales, business development, and go-to-market strategy for the launch of Chrome devices in the education and enterprise sectors. He spent several years in direct sales at IBM, always exceeding quota, and was a founding engineer and lead UI developer at SSB Technologies. Jeff holds a BS in Computer Systems Engineering from Stanford University.
Jonathan joined Upstart from Google, where he managed the Knowledge Graph and oversaw all data acquisition efforts for its public launch on Google Search. Prior to Google, he served as CTO and co-founder of a profitable online apparel retailer. Jonathan graduated Magna Cum Laude with a BS in Computer Science from Yale University and is the winner of Yale's Computer Science Prize.
Jungwon oversees all of Upstart’s user acquisition strategies across digital, offline, and lifecycle channels. She was previously a management consultant at Oliver Wyman, where she assessed the risk exposure of international banks’ capital markets businesses for regulatory stress testing. She brings experience from her time as the CEO and co-Executive Director of a domestic microfinance non-profit. Jungwon graduated cum laude from Yale University, with a B.A. in Economics.
Barry Rafferty joined Upstart from OneMain Financial, where he was responsible for developing their securitization, warehouse and high yield bond programs. Barry was also a key member of the team that successfully sold Onemain to Springleaf Financial from Citigroup. Prior to that, Barry was a portfolio manager at JP Morgan overseeing the “held for investment” mortgage portfolio. Barry started in capital markets developing the securitization program at Citi's Student Loan Corp and divesting the company from Citigroup to Discover during the financial crisis. Barry has amassed over a decade of experience working in capital markets during historically turbulent and transformative years. Barry has a MA in Economics and BS in Finance from the University at Buffalo.
Sanjay was formerly VP of Global Advertising Finance at Google, having spent a decade to help build and internationally expand Google's $80B core economic engine. Sanjay's additional roles while at Google include time as Director of Corp Revenue & Product Profitability, as well as various international finance leadership positions based in both Asia and Europe. Prior to Google, Sanjay spent a few years sourcing and reviewing equity investments with private investment group Artisan Capital, and began his career as a valuation and data specialist at Deloitte Consulting, based out of Montreal and later Madrid. Sanjay has a joint honors degree in Economics and Finance from McGill University in Montreal, and an MBA from Stanford University. He also sits on the board of Pacific Community Ventures, a non-profit funneling capital and advisory support to minority business owners in low-income communities across the US, and has worked in Brazil for Endeavor, a US-based non-profit pioneering the concept of high-impact entrepreneurship in developing markets around the world.
Jane joins Upstart from Alibaba, where she managed investor relations for the largest IPO in history ($25B). Prior to that, Jane led Investor Relations for Google, where she was responsible for all shareholder relationships as well as the care and feeding of 40+ sellside analysts. Jane was the first person at Google hired to manage financial PR, executing a proactive media plan during the global financial crisis. Before her time at Google, Jane was Managing Director on the Equity Research team at Bear Stearns. She began her career as Senior Editor at TheStreet.com, serving as primary editor for media personality Jim Cramer, cofounder of TheStreet.com. Jane graduated Magna cum laude and Phi Beta Kappa from Williams College with a BA in English and an MA in English from University of Pennsylvania.
INVESTORS
Eric Schmidt
Mark Cuban
Marc Benioff
JOIN OUR TEAM
Join us as we bring a combination of modern data science, elegant design, and a commitment to learning and adapting to improve the lives of our borrowers.
1 6% annualized loss rates lowest among prime marketplace lenders based on Morgan Stanley securitization report. Loss rates are approximated from available annualized loss rate and 3-month CDR data.
2 According to a leading online loan aggregator.
3 Based on a Upstart/Transunion retro study & marketplace lending data.
4 Extrapolated from Upstart applicant data, adjusted for differences from general population using credit bureau data.