Fintech Upgrade Valued at $7.3 Billion in Funding Round (1)

The financial-technology company Upgrade Inc. raised $165 million in a funding round that valued the company at more than $7.3 billion ahead of a planned initial public offering in the next year or two.

Neuberger, a collection of funds managed by NB Alternatives Advisers LLC, led the funding round, according to a statement Thursday. Peter Sterling, Neuberger’s head of specialty finance, will be joining Upgrade’s board of directors.

Upgrade, based in San Francisco, focuses on extending credit to mainstream US consumers, rather than the younger or low-income consumers targeted by many other fintechs. Upgrade, led by LendingClub Corp. ...