Social Leverage Letter | Issue #11

Payitoff raises $8.5M, Bogged Down by Experts, and the Coming Student Loan Tsunami

By Pete Weishaupt Nov 14, 2021

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UPFRONT

Social Leverage Portfolio Company Payitoff Raises $8.5M in Seed Funding!

The round was led by Lightspeed Venture Partners. Social Leverage, along with Sound Venture and Struck Capital, participated.

The new capital will assist Payitoff in meeting the growing demands from financial service providers as they get ready for the resumption of student loan payments on February 1, 2022.

Payitoff’s API and low-code solutions deploy quickly, allowing partners to embed on student loan repayment immediately. Notably, the Payitoff system saves the average borrower $2,800 per year. In addition, Payitoff is the first and only provider to automate federal loan assistance programs, resulting in quick approvals for key programs in an average of 10 days versus the 6-week industry standard.

The company was founded in 2017 by Bobby Matson, and while headquartered in New York, they operate with a remote-first team dispersed across the country. This round brings the total raised to $11M, and Social Leverage is proud to be a part of it. For an in depth look at the coming “student loan tsunami”, check out this recent blog post from founder Bobby Matson: We Raised $8.5M to Prepare the Financial Services Industry for the Student Loan Tsunami

READING

Collaborative Fund | Morgan Housel

“The biggest risk to an evolving system is that you become bogged down by experts from a world that no longer exists.”

Some expertise is timeless, a few behaviors always repeat, but most things evolve. And they usually evolve faster than people’s beliefs.  

LISTENING

Panic with Friends | Howard Lindzon

A Student Loan Tsunami will hit shore February 1, 2022 with the end of COVID relief. Payments will resume for over 43 million borrowers in the US. Listen to Payitoff founder Bobby Matson on how he plans to tackle the problem:

Job Board

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Our portfolio companies are seeking great candidates to fill roles in engineering, product management, design, sales, marketing, HR, and more. Browse ALL available opportunities here.

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Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.

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