Upgrade Inc., a San Francisco-based financial technology company with a heavy Valley presence, is expanding its footprint in Phoenix following a recent venture capital raise.
On Sept. 21, Upgrade told AZ Inno that it would be leasing two additional floors at Renaissance Square at 50 N. Central Ave. in downtown Phoenix. The two new floors give Upgrade an additional 39,000 square feet, bringing Upgrade’s total downtown footprint to about 108,000 square feet.
The expansion comes about a month after Upgrade announced a $105 million series E funding round at a $3.3 billion valuation. The funding was led by Koch Disruptive Technologies, the investment arm of Koch Industries.
Upgrade is a so-called neobank that works with FDIC-backed banks to provide people with loans and credit. The company has facilitated more than $7 billion in borrowing since its inception in 2017.
“We have enjoyed operating our service center in Phoenix since inception and growing our presence every year to top 500 team members this year,” Upgrade co-founder and CFO Jeff Bogan said in a statement. “The greater Phoenix talent pool has shown great skills, work ethics and diversity, enabling us to fulfill our mission to deliver more affordable and responsible credit to mainstream consumers.”
Upgrade will continue tapping into the Valley’s talent pool as its office space expands; the company listed 43 job openings on its website on Sept. 21.
Although Phoenix is not the official home to Upgrade or its financial backers, the city has directly benefited from Upgrade’s growth for years now. Last time Upgrade raised VC funding — $62 million in 2018 — the company also expanded its Phoenix team.
Phoenix-based Ryan Bartos and San Francisco-based Matt Aljets, both of whom work for JLL, represented Upgrade on the deal. Lee & Associates represented the landlords, Oaktree Capital Management, L.P. and Cypress Office Properties, LLC, in the transaction.
