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Exclusive: NXT Capital shuts down venture lending unit

January 22, 2014: 11:22 AM ET

nxtCommercial finance company kills off its venture debt business.

FORTUNE -- NXT Capital has quietly chosen to shut down its venture lending program, Fortune has learned.

The group provided senior and subordinated term loans of between $1 million and $20 million to companies that ranged from pre-revenue startups to VC-backed growth-stage companies. Its website lists 24 active portfolio companies, including mBlox, ThreatMetrix and Zimbra.

An NXT spokeswoman did not provide an explanation for the decision, except to say that the firm will be "redeploying the capital to other NXT Capital growth initiatives."

No word yet on what happens to the six-person team, although for right now it appears they are sticking around to manage the existing portfolio.

Jan Haas, the group's senior managing director, declined to comment.

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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