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Fintech firm Vouch falls victim to funding climate: Report

Vouch app screen image
Source: Google Play
Vouch app screen image

Another fintech start-up has run in to trouble. Online lender Vouch Financial is shutting down, sources told the Wall Street Journal.

Vouch let users get a personal loan, the magnitude and interest rate of which depended, in part, on having friends contribute a sponsorship to "vouch" for the borrower. Vouch is shuttering as recent headlines may have culled the crowd of willing financial technology investors, the Wall Street Journal reported.

One of the most prominent fintech companies, LendingClub, has been been the target of highly-publicized investigations in recent weeks, as both its CEO and several senior managers departed. Meanwhile, similar companies like Avant,On Deck Capital and Prosper Marketplace have also reportedly seen deteriorating loan volume, reorganization or tumbling share prices.

Vouch declined to comment to CNBC.

To be sure, Vouch was small relative to many of these companies, having raised just $9 million, according to CrunchBase.

But it all comes at a time when venture capital confidence has stayed tempered since late last year, according to a University of San Francisco report. At the same time, traditional banks have stepped up to compete better online.

For more on Vouch's demise, read the full Wall Street Journal report at WSJ.com.

— CNBC's Jon Marino and Ari Levy contributed to this report.