PayPal co-founder Max Levchin is now the CEO of Affirm, according to The Wall Street Journal. Affirm launched out of technology incubator last year. Affirm partners with e-commerce companies to let customers get instant lines of credit for purchasing items on websites.
Affirm calculates the risk and sets the rate and structure for borrowers based on details from social media accounts and the cost of items they want to purchase instead of FICO credit scores. Levchin compared the idea to flexible loans based on relationships and trust rather than traditional credit scores. The consumers wil lbe able to buy a product now, but pay later with interest on the credit line until it is paid off. Affirm has 32 employees total, including Palantir co-founder Nathan Gettings.
Levchin’s incubator HVF also launched a pregnancy startup called Glow. Levchin decided to go full time on Affirm after he realized how much traction it was getting early-on. Levchin plans to raise more funding by the end of the year so that Affirm can offer different types of loans, including small business loans.
This past year, Affirm quietly raised $45 million from venture capital firms like Khosla Ventures, Lightspeed Venture Partners and Nyca Partners.