# Solo Funds Financial Model

Mobile peer-to-peer lending exchange for small-dollar loans (under $1,000) targeting underbanked Americans.

- Canonical: https://finamodel.com/startups/solo-funds
- Excel download: https://finamodel.com/startup-models/solo-funds.xlsx
- Category: Fintech
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $10M
- Founded: 2023
- Geography: United States.
- Customer: B2C

## About the company

SoLo Funds is a mobile peer-to-peer lending exchange for small-dollar loans, serving underbanked Americans seeking loans generally below $1,000. It connects borrowers and individual lenders rather than funding every loan directly from a conventional bank balance sheet.

The app experience indicates borrowers repay slightly more than principal, consistent with a tip or fee model. The platform’s value depends on balancing two-sided liquidity, underwriting trust, and a low-friction experience for repeat lending and borrowing.

The model should forecast active borrowers and lenders, loan requests, funding conversion, average loan size, repeat rate, and total originated volume. Apply a take rate to tips or fees, then include payment operations, fraud, servicing, and potential B2B or white-label revenue separately.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Mobile-first P2P loan marketplace; borrowers post requests up to $1,000, individual lenders fund them.
- Proprietary "SoLo Score" (social credit algorithm) determines borrower eligibility and loan amount.
- Lender feed shows loan requests filterable by SoLo Score, amount, and location.
- Borrowers set their own repayment amount (i.e., tip/interest is borrower-determined, visible in app as "Amount" vs. "Pay + Payback" columns - e.g. $65 → $70, $101 → $106, $52 → $55, $95 → $100).
- Bundled financial literacy curriculum (white-labeled, free to all users - EVERFI partnership).
- AML/KYC identity validation and bank authentication at sign-up.
- Roadmap includes private group lending, tax reporting, and white-label banking solutions.

## Market

- 78% of American workers live paycheck-to-paycheck.
- 47% of Americans cannot cover a $400 cash emergency.
- Problem framing: resources for loans under $1,000 are "extremely scarce".
- No explicit TAM/SAM/SOM dollar figures provided. Market size not quantified in deck.

## Revenue model

- Not explicitly stated in deck.
- App UI (slide 4) shows borrowers repay slightly more than they borrow (e.g. $65 borrowed → $70 repayment; $101 → $106; $52 → $55; $95 → $100) - implies a borrower-set tip/fee on top of principal, consistent with SoLo's known "tip" model.
- Platform likely takes a transaction fee or a cut of the borrower tip; exact take-rate not disclosed in deck.
- Roadmap mentions "White-Label Banking Solutions" as a future revenue line.
- Financial literacy curriculum is stated as free to users; no monetisation of that channel mentioned.

## Traction & metrics

- Raised $1.2M Seed round.
- Published patent; SoLo trademarks and IP; proprietary Social Credit Algorithm.
- Accelerators: Techstars Patriot Boot Camp (zero equity), LUMOS, HILLMAN.
- Partnerships: Synapse (money transmitter), EVERFI (financial literacy), TrueAccord (debt collections), Microblink (ID scanner).
- Press: Black Enterprise, Blavity, App Idea Awards, KnowTechie.
- Speaking: Women's Bond Club, Money 20/20.
- No user count, loan volume, GMV, revenue, or retention figures disclosed.

## Unit economics

- App UI implies loan tip spread of ~5–8% per loan (e.g. $5 on $65, $5 on $101, $3 on $52, $5 on $95); platform take-rate on this spread not stated.

## Competition / moat

- Direct competitors shown in matrix: LendingClub, LendingTree, Prosper, Puddle, LendUp.
- SoLo is the only player checking all five features: Low Loan, Mobile, Web, Peer-to-Peer, Financial Literacy.
- LendingClub, LendingTree, Prosper: no low-loan, no mobile, P2P marked as institution-dictates-borrower.
- Puddle: low loan + P2P but no mobile, no financial literacy.
- LendUp: low loan + financial literacy but no mobile, no P2P.
- Moat claims: SoLo Score proprietary algorithm, published patent, mobile-first UX, bundled financial literacy.

## Team & funding ask / use of funds

- Founders: Travis Holoway (CEO, ex-Northwestern Mutual), Rodney Williams (Advisor, ex-LISNR / P&G), Jarrel Carter (Strategic Partnerships, Roc Nation), Taylor Conophy (Design Lead, ex-NYSE / RedOwl).
- Full team of 9 listed: PM, Lead Developer, Data Scientist, iOS/Android/Backend developers, Product Designer, Design & Marketing, QA.
- Advisors: Jenny Fielding (MD Techstars NY & SF), Seth Metcalf (Former Deputy Treasurer of Ohio), Richelieu Dennis (Sundial Brands exit, Essence owner).
- Funding ask: Not explicitly stated. Deck is marked "Seed" and references having already raised $1.2M; no new round size or use-of-funds breakdown provided.
- Contact: Travis Holoway, travis@solofunds.com.

## Recommended financial model

- Archetype + why: **Marketplace GMV / transaction-volume model** with a thin take-rate layer. SoLo is a two-sided loan marketplace - the natural forecast unit is total loan volume originated (GMV), from which platform revenue is derived as a take-rate on borrower tips. Secondary line: potential white-label / B2B revenue in later years.
- Forecast horizon & granularity: 3 years monthly (2018–2020), switching to quarterly in year 3. Monthly needed to track loan volume ramp and cash burn against $1.2M seed.
- Key drivers & assumptions:
  - Active borrowers (monthly): start near zero at Go-to-Market launch (May 2018 per roadmap); ramp driven by referral program (June '18) and banking partner (Aug '18).
  - Average loan size: ~$150–$300 (sub-$1,000 max; typical payday-alternative range).
  - Loans per borrower per month: 1–2x (short-cycle, repeat use likely given paycheck-to-paycheck audience).
  - Monthly GMV = Active borrowers × avg loan size × loans/borrower/month.
  - Borrower tip rate (effective yield): ~5–8% per loan, based on app UI examples.
  - Platform take-rate on tips: 50–70% of tip (common marketplace model); not disclosed.
  - Net revenue = GMV × tip rate × platform take-rate.
  - Default/charge-off rate: 5–15% of loan volume (high-risk, thin-file borrowers; benchmark against payday/BNPL peers).
  - CAC: $5–$20 (mobile-social referral model; low but unconfirmed).
  - Headcount and opex: based on ~10-person team as of 2018 deck; scale with growth.
- Scenarios (Base / Bull / Bear - which variables flex):
  - Bear: slow borrower adoption, high default rate (15%), low take-rate capture.
  - Base: steady referral-driven growth, 8% tip rate, 10% defaults, 60% take-rate.
  - Bull: banking partner (Aug '18) accelerates lender supply, defaults stay at 5%, white-label revenue begins in 2019.
- Required sheets / outputs:
  1. Assumptions - all drivers with scenario toggles (Base/Bull/Bear via CHOOSE).
  2. User Growth - borrowers and lenders by cohort/month.
  3. Loan Volume (GMV) - monthly originations, outstanding book.
  4. P&L - net revenue (tips × take-rate), less defaults, less opex (headcount, infra, compliance, marketing).
  5. Cash Flow & Runway - burn vs. $1.2M seed; when next raise is needed.
  6. Dashboard - GMV, active users, net revenue, default rate, runway.

## Frequently asked questions

### Is the Solo Funds financial model free?

Yes. The Solo Funds model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.