Techstars' big Thursday

A SoLo-ution to traditional lending?

Rodney Williams, a Baltimore native and tech entrepreneur, established SoLo Funds in 2018 to address financial challenges in his community. Recently, as reported by The Baltimore Sun, SoLo Funds reached 1 million users, becoming the largest Black-owned consumer fintech firm in the US. The platform provides small loans, starting at $100, as an alternative to high-interest credit cards and payday loans. Users can borrow up to $575, and SoLo boasts a 93% repayment rate.

Despite reported regulatory scrutiny and allegations of predatory lending, the platform has gained support from notable Black venture capitalists. Williams, who cofounded SoLo in New York with his best friend and serves as CEO, has defended this microlending model, emphasizing its growth potential.

“SoLo has created a community finance model that is groundbreaking and innovative,” Williams previously told TechCrunch, adding: “As a result, we cannot easily be categorized into traditional frameworks.”

What do you think about SoLo’s model? Let us know by emailing baltimore@technical.ly or responding to this email.

– Technical.ly reporter Alanah Nichole Davis (alanah@technical.ly)