[Chambo]

If anyone is interested in offering their thoughts on what an OnDeck IPO would do for the industry and have them be published on the site's blog or in the magazine, PM me.

Those who do not learn form history are doomed to repeat it.

The Internet world tried this model 15 years ago...."don't worry about profits, they'll come."

How did that turn out?

[JayBallentine]

Thanks Isaac. I appreciate that. It is hard to ignore that OnDeck has just as many critics as they do fans.

100% agree with Isaac on the quality of this piece. I think the motivation for the IPO can be found in the term sheets of successive rounds of funding.

Early investors want out. That's why they bought in to begin with... To make 10x their cash in 7 years or so.

An argument can be made for desperation being the driver.

Also, the media as it does with every IPO, including Facebook, will try to excoriate OnDeck. They will undoubtedly use the OnDeck customers that have been stacked on and stacked out of business. "Write first ask questions last."

[Chambo]

100% agree with Isaac on the quality of this piece. I think the motivation for the IPO can be found in the term sheets of successive rounds of funding.

Early investors want out. That's why they bought in to begin with... To make 10x their cash in 7 years or so.

An argument can be made for desperation being the driver.

Also, the media as it does with every IPO, including Facebook, will try to excoriate OnDeck. They will undoubtedly use the OnDeck customers that have been stacked on and stacked out of business. "Write first ask questions last."

Early investors are already out. What do you think round 5, 6 and 7 of financing paid for?

[FUNd]

Great article Sean.

An OD IPO is going to raise the awareness level of the ACH/MCA product immensely. There are so many qualified business owners that don't know about this product it's sick. They don't listen to telemarketers, they toss their junk mail, and do zero research online, but still lay awake at night thinking about how their local bank declined them and how they won't get the capital they need.

Maybe if they read about the IPO in the business section or see it on CNBC, the light bulb will go off.

[JayBallentine]

Early investors are already out. What do you think round 5, 6 and 7 of financing paid for?

I just can't see Google Ventures and Peter Thiel paying off early investors when they came in on later rounds... Could be wrong. Just don't see it.

[Guy In The Know]

Early investors are already out. What do you think round 5, 6 and 7 of financing paid for?

You couldn't be more wrong. About almost everything you are saying on this thread.

[SuperFunds]

You couldn't be more wrong. About almost everything you are saying on this thread.

Thank you Riddler from the Batman. This is pretty cryptic. Care to shed some light on the truth then? And are you saying you think everyone is wrong or just Chambo?

[isaacdstern]

Small-Business Lender OnDeck Reportedly Plans IPO
http://www.inc.com/jeremy-quittner/o...-offering.html

[bizloanbroker]

Can you call a company a technology company if the technology they use is a massive failure? Ondeck rolled out automated underwriting based on an algorithm and stooped doing basic underwriting checks like a merchant interview and a landlord check. Once they did that their funding numbers skyrocketed but so did their default rate. Sure they are faster and funding more deals but 50% more of their deals are defaulting now, how can anyone with half a brain consider that a success??? Unless success here is measured by how much MORE money they are losing.....


http://www.forbes.com/sites/ryancald...breakneck-pace

[isaacdstern]

Excellent article Sean, very funny!

http://www.merchantprocessingresourc...hnology-craze/

[isaacdstern]

heard an ad this morning on ABC radio from OD and the entire message was "we are not a Merchant Cash Advance company" you gotta love people live outside of reality....face facts guys you are an MCA company weather you like it or not

[isaacdstern]

Also we just got beat out on a deal by OD...they gave the merchant a 1 year 1.11 FR. Now I am not in the OD accounting department but can someone explain to me how this deal could possibly be profitable

[J.Celifarco]

that had to be an in house sales guy because they get their platinum buyrates on all deals.. To answer you question how is it profitable???? I dont think it is

[Chambo]

that had to be an in house sales guy because they get their platinum buyrates on all deals.. To answer you question how is it profitable???? I dont think it is

ODC has never been profitable. Why would they start now? Especially if they are about to get several million dollars worth of other people's money to throw out at deals?

[JayBallentine]

Also we just got beat out on a deal by OD...they gave the merchant a 1 year 1.11 FR. Now I am not in the OD accounting department but can someone explain to me how this deal could possibly be profitable

OnDeck is about to get their arses handed to them in the press on the buildup to IPO. This is a story they are selling.

I'm Completely talking from no basis of real knowledge of situation, but I guaran-damn-tee their PR firm has a firm hand in product positioning and strategy, at least till after IPO.

"OK OnDeck. Here's the plan... Find some biz owners and fund at a stupidly low factor, don't worry about making money, just try not to lose any and we got it from there."

[freddy]

OD has OD'D on the belief that a competitive war of attrition will payoff for them in the end. They will make money at first but it is not sustainable working to fund anyone and their mom. They are making noise right now. The sales guys should take advantage and make as much money add they can while the pockets are open. just like everything else everything that is inflated by bad helium may instead of soaring fall flat

[bizloanbroker]

Ondeck STOLE another renewal from me. Its too bad I do not have an army of lawyers like them or I would take them on. I have a tally so far and I am owed over $10,000 in renewal commissions that they have not paid me. I guess with all their recent 30% default rate and their IPO falling apart they must just need the money. Thanks for ****ting on the little guy Noah Breslow!