Nationwide buys stake in small-business lender

Nationwide has purchased a stake in a small-business lender, the latest investment from the insurer’s $100 million fund dedicated to putting money to work in young companies in insurance and financial services.

Nationwide said Tuesday it has made an investment in BlueVine, a provider of online working capital for small- and mediumsize businesses.

“As the No. 1 total small-business insurer in the U.S., Nationwide has a deep and enduring commitment to smallbusiness owners,” said Erik Ross, head of Nationwide’s venture capital team, in a statement. “This investment aligns with our mission to help business owners protect what’s most important and plan for a secure financial future.”

The investment is Nationwide’s 10th since it launched the fund a year ago. The company has said it expects to make 20 to 30 investments overall.

Nationwide’s goal with the fund is to keep the insurer relevant in industries expected to undergo rapid technological change in the years ahead.

Nationwide’s investments are made in areas where it already is focused: retirement planning, insurance and financial services, and protecting the information of consumers.

Terms of the deal in BlueVine were not announced.

BlueVine, based in Redwood City, California, was founded in 2013 and provides financing that businesses can use to buy inventory, cover expenses or expand. It also has developed a cloud-based platform that allows businesses to receive cash advances on outstanding invoices.

It has raised more than $500 million in equity and debt funding to date from multiple investors.