Kabbage, an online merchant lending startup, has raised $17 million in new funding. The investors include Mohr Davidow Ventures, BlueRun Ventures, David Bonderman, Warren Stephens, the UPS Strategic Enterprise Fund, Jim McKelvey and others. Kabbage lends money to online merchants using PayPal’s Adaptive Payments API. [TechCrunch]

Kabbage is a service that enables merchants to get capital to start their own online stores. The idea behind the company was so attractive that they have raised $6.65 million in a new round of funding led by BlueRun Ventures. David Bonderman, Warren Stephens, and the UPS Strategic Enterprise Fund also participated in this round of funding.