Former AMEX CEO Backs Start-Up Providing Credit Scores for Immigrants
Ken Chenault, the former American Express CEO, is backing Nova Credit -- a start-up company that provides credit scores for immigrants who struggle to rent apartments and access other basic services upon their arrival in the U.S. It has secured funding from General Catalyst, the venture capital group which Chenault joined as Chairman and Managing Director this year, that has stood behind companies including Snap, Stripe, and Warby Parker. Alongside an existing backer of Nova Credit, Index Ventures, they are putting up about $16 million in Series A funding. Nova Credit, which was founded as a research project by a trio of Stanford University graduate students, pulls credit history from an immigrant’s country of origin and converts it into a U.S. credit score that can be used by lenders and other groups. “The company has the potential to bring millions of new consumers to the financial services industry and to create new banking and credit opportunities for people who, up until now, have been left out of the system,” Chenault said. More here.