Octane Raises $100 Million In Series F Funding Round

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Octane, a fintech company specializing in instant financing for recreational and lifestyle purchases, has raised $100 million in its Series F funding round at a $1.3 billion post money valuation. The round was led by Valar Ventures, with participation from Upper90, Huntington Bank, Camping World, Good Sam, Holler-Classic, and a mix of existing and new investors.

Octane’s Series F round represents a significant milestone for the company, enabling accelerated expansion into new markets and enhanced product offerings. The $100 million equity infusion comes at a time when global fintech venture funding has increased 30% year over year, reaching $49.4 billion across 3,545 deals as of December 11, 2025. Valar Ventures, a repeat investor, led the round, underscoring their belief in Octane’s long term compounding potential in underserved markets like powersports, RVs, marine, and outdoor equipment. Other participants include strategic players like Camping World and Huntington Bank, which could open doors to deeper partnerships in retail and banking.

The funding will fuel Octane’s growth initiatives, including market penetration in existing segments and entry into adjacent large ticket purchase categories. With over $7 billion in loan originations since inception and projections for $2.1 billion in 2025, the capital supports scaling its proprietary underwriting engine and technology platform. Octane’s “Captive as a Service” model, which integrates technology, underwriting, and servicing under partner brands, positions it to diversify revenue for retailers and improve consumer experiences. This round also provides liquidity to employees, aiding talent retention in a competitive fintech space.

Octane has demonstrated robust financial health, achieving GAAP net income profitability in 2021, 2023, and 2024, with an estimated $80 million in adjusted EBITDA for 2025. Its network includes over 4,000 dealer partners and 60+ OEM brands, operating in markets valued at $150 billion combined. Recent product launches, such as updates to its financing portal and customer tools, have driven a 30%+ year over year originations growth from Q3 2024 to Q3 2025.

Octane Lending, Inc., operating as Octane, is a New York-based fintech company founded in 2014 by Jason Guss and Mark Davidson, with a mission to revolutionize the buying experience for recreational and lifestyle purchases through seamless, end to end digital financing. The company focuses on large ticket items in categories such as powersports vehicles (e.g., motorcycles, ATVs, snowmobiles), RVs, boats, personal watercraft, outdoor power equipment, mowers, tractors, trailers, and autos. By offering “instant” financing, Octane connects consumers with merchants via its in-house lender, Roadrunner Financial, Inc., and supports a network of over 4,000 dealer partners and more than 60 original equipment manufacturer (OEM) brands. Its platform not only facilitates loans but also adds value through editorial brands like Cycle World and UTV Driver, which inspire enthusiasts and integrate e-commerce tools for prequalification and routing to dealerships.

The company’s business model combines software as a service (SaaS) elements with lending, generating revenue from platform fees paid by merchants or OEMs for promotional financing, servicing income and performance fees from loan sales, and interest income from retained loans. This hybrid approach differentiates Octane from pure lenders or tech providers, as emphasized by CEO Jason Guss: “A lot of VCs believe SaaS companies should just focus on pure tech and lenders should just do lending. We believe that the best companies need to do both.” Since inception, Octane has originated over $7.5 billion in loans, with $1.6 billion in 2024 alone and a projected $2.1 billion in 2025. It has issued $4.7 billion in asset backed securities since 2019 and sold or committed to sell $3.3 billion in secured consumer loans since December 2023. Octane’s profitability track record (GAAP net income positive in 2021, 2023, and 2024, with $80 million in adjusted EBITDA forecasted for 2025) highlights its operational efficiency amid economic fluctuations.

In 2025, Octane continued to innovate, launching enhancements to its financing portal for faster customer acquisition, simplified payment options, expedited support, and greater flexibility in its Customer Portal. These updates contributed to over 30% growth in originations from Q3 2024 to Q3 2025. The company’s “Captive as a Service” offering, which bundles technology, underwriting, loan processing, servicing, and capital markets execution under a partner’s brand, enables retailers to diversify revenue, build enterprise value, and enhance customer retention. With a team of over 600 employees in remote and hybrid roles, Octane operates in markets collectively worth $150 billion, positioning it to capture increasing market share.

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The latest Series F funding round, closed on December 15, 2025, raised $100 million in equity at a $1.3 billion post money valuation, marking Octane’s entry into unicorn status. Led by Valar Ventures, a firm backed by Peter Thiel and known for investments in long compounding tech companies, the round included participation from Upper90, Huntington Bank, Camping World, Good Sam, Holler-Classic Family of Dealerships, and a blend of returning and new investors. Notably, half the capital ($50 million) is primary financing to support growth, while the other half facilitates secondary share sales for liquidity to existing shareholders, including current and former employees. This structure reflects a mature approach to capital allocation, balancing expansion with stakeholder rewards.

Investor sentiment is optimistic, with Valar Ventures’ Founding Partner James Fitzgerald stating, “One of the investing lessons of the past two decades is that the best tech companies can compound for far longer than expected. Octane’s unique offering supports dealers and OEMs with software and financing solutions unavailable elsewhere.” Upper90’s Managing Partner Billy Libby added, “Few public or private companies are growing as rapidly, and profitably, as Octane.” CEO Jason Guss echoed this, noting the funding will accelerate key initiatives to differentiate in current markets and enter new ones.

This round builds on Octane’s funding trajectory, bringing total equity to $342 million. Previous rounds include the $50 million Series E in August 2024 at a $1.1 billion valuation, led by Valar Ventures with participation from Citi Ventures and others, which elevated total equity to $242 million at the time. The Series D in August 2021 raised $52 million at over $900 million valuation, led by Progressive Investment Company and Valar Ventures. Earlier, the Series C in November 2019 secured approximately $70 million at a $400 million post money valuation, led by Valar Ventures. Series B in 2018-2019 totaled around $41 million across tranches, while Series A in 2016-2017 amounted to about $26 million, and seed funding in 2014-2015 was roughly $1.5 million.

Beyond equity, Octane has leveraged debt markets extensively, completing over $4.7 billion in asset backed securitizations since 2019, including a $219 million deal in December 2025 and a $284 million issuance in October 2025. It has also secured forward flow and whole loan sales totaling over $3.3 billion since late 2023, partnering with firms like Moore Capital Management, Yieldstreet, New York Life, MetLife, Equitable, AB CarVal, and Nuveen. These capital markets activities provide liquidity and fuel originations without diluting equity.

In the broader fintech context, Octane’s raise aligns with a 30% surge in sector funding in 2025, driven by demand for specialized lending platforms. Social media reactions on X (formerly Twitter) highlight investor enthusiasm, with posts noting Octane’s profitability and market leadership in powersports financing. Analysts praise its “unique” integration of software and financing, which Fitzgerald believes will enable sustained market share gains. However, challenges remain, including economic sensitivity in discretionary spending categories and competition from traditional lenders. Despite this, Octane’s track record suggests resilience, with Guss emphasizing, “Lending isn’t bad, bad lending is bad. Good lending is one of the oldest and most robust business models in the world.”

Looking ahead, the funding positions Octane to deepen its product suite, such as Octane Prequal and Prequal Flex, and expand into new verticals where consumers seek integrated financial solutions. With strong backing from strategic investors and a proven profitable model, Octane is well equipped to capitalize on the $150 billion recreational markets, potentially paving the way for further growth or an eventual public offering.

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