Bread develops a pay-over-time button on retailer websites, allowing merchants to receive full price on merchandise while collecting monthly payments with interest from the consumer. Bessemer hasn't invested in the space since 2006, when the fund invested in p2p lender Zopa.
Bessemer Venture Partners has made its first investment in a new alternative lending startup in about 10 years, leading a $14.3 million Series A round in Bread, the investment firm told VentureWire. New York-based Bread, which is incorporated as Lon Inc., powers a pay-over-time button on retailer websites. It pays the full amount of a purchase to a merchant and then collects monthly payments with interest from the consumer. Its current offer is a 24-month loan.