NEW YORK (Feb. 22, 2019) – A-Rod Corp announced its newest investment in Nova Credit on Friday afternoon.
“We are excited about this investment,” said CEO, Alex Rodriguez, “This venture celebrates our diversification. As a Dominican-American I am proud to be able to help out fellow immigrants who struggle differently. We believe in changing lives at A-Rod Corp and Nova echos that mission.”
This month, Nova Credit raised a $50M round led by Kleiner Perkins to finally make the global consumer credit reporting system whole. Mr. Rodriguez participated in the Series B funding along with Canapi Ventures and existing investors General Catalyst, Index Ventures, and NYCA Partners. Nova also welcomed Avid Ventures, Endeavor, Susa Ventures and Sound Ventures and the Edge of U2.
ABOUT NOVA: Nova Credit is the premier cross-border bureau. Lack of a domestic credit history keeps millions of immigrants in the United States from realizing their dreams. The award-winning fintech helps newcomers and other global citizens apply for financial services using their international credit history from countries including Australia, Brazil, Canada, India, Mexico, Nigeria, South Korea, and the UK. We translate international credit data into a U.S.-equivalent score and report in a format familiar to American underwriters, who use it to evaluate applications for credit products. Founded by immigrants, we have a diverse team from around the globe who are creating a world beyond borders to help newcomers arrive and thrive.
ON A MISSION: We strive to enable the flow of humans not just for their economic potential, but because of the value of that movement itself in bringing new perspectives, creativity, community, and innovation. For Nova Credit, we are here to dream up a world beyond borders and our mission is to inspire and facilitate the flow of human diversity. The modern world as we know it has been created through the movement and collaboration of humans. Across changing borders, regions, and cultures, a continuous cycle of human migration and settlement is what defines us as different nations, composes our family histories, and shapes our personal stories.
PROBLEM SOLVING: All newcomers to the U.S. are rendered “credit invisible” upon arrival because American underwriters can’t access international credit data. Even if they have a good credit rating at their prior home countries, recent immigrants often struggle to accomplish the most basic tasks such as getting an apartment lease, a cell phone plan, credit card or student loan. Before Nova Credit translated international credit data to a U.S.-equivalent score, all newcomers had to build their U.S. credit history back to its previous levels from scratch, which can take as long as five years.
INNOVATION: Nova Credit’s core innovation is a U.S.-equivalent global credit scoring and reporting format, the Credit Passport®. Similar to a U.S. credit report, it contains a FICO-equivalent score, tradelines and inquiry history, allowing consumers who have recently arrived in the U.S. to attempt to demonstrate their creditworthiness to lenders. Partners like American Express, MPOWER Financing and Yardi can seamlessly underwrite qualifying newcomers without a U.S. credit score using Nova Credit. The solution requires consumer consent.For most countries, Nova Credit aligns the country-of-origin credit score to U.S. credit risk levels by matching the default rates. For example, a score of 1050 in the originating country that represents a default rate of 3% might equate to a score of 710 at the same default rate in the U.S. In that case the consumer’s score is adjusted to 710 for U.S. underwriting purposes.