Startup takes pawn shops online

SAN FRANCISCO, US: Denver, Colorado-based Internet Pawn (www.internetpawn.com), which said it is creating the first dedicated online pawn shop nationwide, recently announced it raised $1.5 million in its first round of venture funding from Daylight Partners and Access Ventures.

Rocky Mountain, a partner at Austin, Texas-based Daylight Partners, said his venture firm rarely invests in companies outside its own backyard. "However, Internet Pawn's offering is so disruptive we felt compelled to make an exception," he said.

The company offers pawn loans - cash advances based on the collateral of customers' assets - at no interest due for six months and loan costs 60 per cent less than traditional brick-and-mortar pawn shops, according to Mountain, who said the online pawn shop will prove to be an alternative for the millions of U.S. residents who currently utilize pawn services to meet their short-term cash needs.

The company was launched last year by Todd Hills, a veteran of the pawn shop industry, having been responsible for the Jumping Jack Cash chain of traditional pawn shops in Colorado and Utah. Hills said Internet Pawn will offer loans on just about anything legitimate and of value, from diamonds, art, gold & jewelry, to automobiles and motorcycles.