Investor Presentation. May 2017

Investor Presentation May 2017

Forward-Looking Statements This presentation, including the accompanying oral presentation (collectively, this presentation ), does not constitute an offer to sell or the solicitation of an offer to buy any securities. This presentation is provided by On Deck Capital, Inc. ( OnDeck ) for informational purposes only. No representations express or implied are being made by OnDeck or any other person as to the accuracy or completeness of the information contained herein. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements include statements about scalability, growing distribution channels, credit predictability and information concerning our future financial performance, business plans and objectives, potential growth opportunities, financing plans, competitive position, industry environment and potential market opportunities. Forward-looking statements can also be identified by words such as "will," "enables," "expects, may, "allows," "continues," "believes,, intends, "anticipates," "estimates" or similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. Moreover, we do not assume responsibility for the accuracy and completeness of forward-looking statements. As such, they are subject to inherent uncertainties, changes in circumstances, known and unknown risks and other factors that are difficult to predict and in many cases outside our control. As a result, you should not rely on any forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our expectations. Important factors that could cause actual results to differ from our forward-looking statements are the risks that we may not be able to manage our anticipated or actual growth effectively, that our credit models do not adequately identify potential risks, the timing and amount of expected savings from cost rationalization programs and other risks, including those under the heading Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2016 and in other documents that we file with the Securities and Exchange Commission, or SEC, from time to time which are available on the SEC website at www.sec.gov. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, except as required by law. In addition to U.S. GAAP financial information, this presentation includes certain non-gaap financial measures. We believe that non-gaap measures can provide useful supplemental information for period-to-period comparisons of our core business and are useful to investors and others in understanding and evaluating our operating results. These non-gaap measures have not been calculated in accordance with U.S. GAAP. You should not consider them in isolation or as a substitute for an analysis of our results under U.S. GAAP. There are a number of limitations related to the use of these non-gaap measures compared to their nearest U.S. GAAP equivalents. In addition, other companies may calculate non-gaap financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-gaap financial measures as tools for comparison. The non-gaap measures contained in this presentation include Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Expense Ratio, Adjusted Operating Yield and certain operating expense categories, all of which exclude stock-based compensation, as well as Net Interest Margin After Credit Losses. Please refer to pages 35 through 46 in the Appendix of this presentation for a description of these non-gaap measures, their respective limitations and reconciliations to U.S. GAAP. 2

The Leading Online Platform for Small Business Lending $6 Billion+ total originations ORIGINATIONS $MM 1,874 2,404 25% y-o-y Loans Under Management growth Scalable financial model 70,000+ small businesses served 570 573 2015 2016 1Q '16 1Q '17 LOANS UNDER MANAGEMENT $MM 890 1,203 982 1,223 2015 2016 1Q '16 1Q '17 5 th Generation proprietary credit scoring model 79 net promoter score 1 GROSS REVENUE $MM 255 291 63 93 2015 2016 1Q '16 1Q '17 1. Based on all OnDeck s distribution channels for the period ended March 31, 2017. 3

Investment Highlights Massive and underserved market Proprietary analytics and scoring models Integrated and scalable technology platform Robust customer acquisition channels Growth opportunity through Platform-As-A-Service Diversified funding platform Attractive financial profile 4

Small Business Lending Market is Massive and Underserved 28MM U.S. Small Businesses $80-120Bn Unmet Demand for Small Business Lines of Credit $203Bn Business Loan Balances Under $250,000 in the U.S. in Q4 ꞌ16 70K+ OnDeck Unique US Small Businesses Served $1.2Bn OnDeck Loans Under Management 1 Sources: U.S. SBA, FDIC 12/31/16, Oliver Wyman, Financing Small Business 1. As of March 31, 2017; Loans under management represents the Unpaid Principal Balance plus the amount of principal outstanding for loans held for sale, excluding net deferred origination costs, plus the amount of principal outstanding of term loans the company serviced for others, each at the end of the period. 5

Diversity of Small Businesses Creates Challenges for Traditional Lenders CHALLENGES FOR TRADITIONAL LENDERS CASH FLOW PROFILE Restaurant Credit Card Rev. Cash Rev. Monthly Exp. Inventory & Payroll Landscaping Company Diverse businesses require manual underwriting Technology and data limitations Lack of standardized small business credit score Landscaping Rev. Snow Removal Rev. Monthly Exp. Fuel & Payroll Plumbing Company Repair Rev. Subcontractor Rev. Monthly Exp. Supplies & Payroll Q1 Q2 Q3 Q4 6

Leading to a Frustrating Borrowing Experience for Small Businesses FRUSTRATIONS FOR SMALL BUSINESSES Time consuming offline process Non-tailored credit assessment Product mismatch Rigid collateral requirements 77

The OnDeck Score Proprietary and Purpose Built for Small Business 5 th Generation proprietary credit scoring model Transactional Data Score 100+ external data sources 10 Million+ small businesses in proprietary database 2,000+ data points per application Credit Data Proprietary Data Accounting Data Public Records Social Data Proprietary Data Analysis Platform Probabilistic record linkage Dimensionality reduction Ensemble learning Exhaustive cross validation Feature engineering Adaptive learning A B C D E RISK GRADING F 8

% OF DEFAULTS ELIMINATED We Rely on the OnDeck Score for Greater Accuracy, Predictability and Access More Accurate than the Personal Credit Score at Predicting Bad Credit Risk 1 Resulting in Funding Significantly More Loans for the Same Risk 100% 90% 40 20 10 10% 0% 100% 40% 20% 10% 0% Random Personal Credit Score OnDeck Score ACCEPTANCE RATE (%) The OnDeck Score Personal Credit Score Random (1) Analysis on OnDeck Score v5 using actual OnDeck loan performance data. 9

The OnDeck Solution for Small Business Lending APPLY APPROVE FUND Online Minutes 1 Automated Review As Fast as Immediately As Fast As Same Day TRADITIONAL LENDING Offline 33 Hours 2 Manual Review Weeks or Months Several Days 1. Application time depends on customer having the required documentation available. 2. Source: Small business survey conducted by the Federal Reserve Bank of New York, Spring 2014. 10

Tailored Products for Small Businesses TERM LOAN (Launched in 2007) LINE OF CREDIT (Launched in 2013) Use Case Buying Inventory Hiring New Staff Marketing Managing Cash Flow Size $5,000 $500,000 $5,000 $100,000 Term 3 36 months 6 months 3 Pricing 4 Annual Interest Rate as low as 5.99% 1 Average 45% APR 2 12.99% 39.9% APR Payment Automated daily or weekly payments Automated weekly payments Availability Renewal opportunity at ~50% paid down Draw on-demand 1. For select customers. 2. Based on Q1 ꞌ17 Originations. 3. 6 month reset upon each draw. 4. Pricing available through certain OnDeck strategic partners or channels may vary. 11

Established and Diverse Customer Base $640,000 Median Annual Revenue 1 8 Years Median Time in Business 700+ Industries 70,000+ Small Businesses Served 1. Based on Q1 ꞌ17 Originations 12

Integrated and Scalable Technology Platform Online Customer Experience Data Aggregation, Analytics & Scoring Technology Powered Servicing & Collections $6 Billion+ Total Originations 120,000+ Total Loans 14 Million+ Customer Payments 13

Diversified and Growing Distribution Channels DIRECT & STRATEGIC PARTNERS CHANNEL MIX Q1 17 29,516 33,882 18,790 77% 2014 2015 2016 FUNDING ADVISORS 8,131 7,625 8,642 23% 2014 2015 2016 Direct and Strategic Partners Funding Advisors Numbers represent loan units. Numbers represent loan units. 14

Expanding Partner Ecosystem OnDeck Enabling Partners to Expand Core Solutions and Value Added Services Banks SMB Solution Online Lending ISOs/Processors Includes affiliates, subsidiaries and divisions. 15

Diverse Funding Model Focused on Flexibility Securitization / Warehouse Marketplace BALANCE SHEET FUNDING MIX AS OF Q1 17 Target Mix Investor Type 95-100% of Term Loan Originations Investors Seeking Fixed Returns Less than 5% of Term Loan Originations Investors Seeking Variable Returns OnDeck Marketplace Securitization Flexibility Scalable as Originations Grow Greater Product and Investor Flexibility Cost Low Cost Execution Profitable Revenue Stream Resiliency Capital-Light Structure, Equity Contribution Aligns Interests Diversified Risk Exposure, Servicing Fee Aligns Interests Warehouse Lines Funding mix includes the principal balance of all loans originated by OnDeck as of March 31, 2017 for loans financed with funding debt or sold to OnDeck Marketplace investors. 16

Consistent Portfolio Performance Over Time NET CHARGE-OFFS BY COHORT 1 9.0% 6.4% 6.8% 6.9% 7.1% 6.8% 6.8% 6.8% 5.5% 5.5% 4.4% 4.0% 1.0% 0.0% Avg. Term (months) 3 2 2 2 2 2 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 9.6 11.1 8.8 7.5 8.7 9.2 10.0 11.2 12.4 13.2 13.7 13.1 12.8 12.3 2 1. Represents net lifetime charge-offs of the unpaid principal balances charged off less recoveries of loans previously charged off. A given cohort s net lifetime charge-off ratio equals the cohort s net lifetime charge-offs through March 31, 2017 divided by the cohort s total original loan volume. Repeat loans in the denominator include the full renewal loan principal amount. The chart includes term loan originations, regardless of funding source, including loans sold through our OnDeck Marketplace or held for sale on our balance sheet and excluding ODaaS related loans. 2. As of March 31, 2017, principal balance of term loans including loans sold through our OnDeck Marketplace or held for sale on our balance sheet still outstanding was 0% for all cohorts except the 2015, Q1 16, Q2 16, Q3 16, Q4 16 and Q1 17 cohorts, which had principal outstanding of 1.1%, 5.9%, 16.4%, 33.3%, 61.5%, and 86.9%, respectively. 3. Represents the initial contractual term at origination. 17

Growth Strategy Brand and direct marketing International expansion Strategic partnership Expand customer lifetime value Data and analytics Product expansion 18

Industry Leading Management Team MANAGEMENT TEAM BOARD OF DIRECTORS Noah Breslow CEO Howard Katzenberg CFO Nick Brown Risk Noah Breslow Chairman of the Board Ronald Verni Former CEO Sage Software James Robinson III RRE Ventures Former CEO, American Express Jim Rosenthal Senior Advisor and Former COO Morgan Stanley Andrea Gellert Revenue Gagan Kanjlia Product Cory Kampfer Legal Bruce P. Nolop Former CFO E*TRADE Financial Corporation Jane J. Thompson Walmart Financial Services CFPB Advisory Board Daniel S. Henson Former EVP GE Capital Corporation David Hartwig Sapphire Ventures Neil Wolfson SF Capital Group Daniel Gorfine External Affairs Lorna Hagen People Operations Ron Elimelekh Capital Markets TEAM EXPERIENCE Robert Young International Martha Dreiling Operations Jerome Hershey Business Development 19

Financial Highlights Healthy net interest margins after losses Structural protections with product and portfolio design Compelling customer LTV Diversified funding model Inherent operating leverage with scale 20

Consistent Loans Under Management Growth ONDECK MANAGED PORTFOLIO BALANCE SHEET LOANS ($MM) $320 88% $382 89% $466 91% $572 14% 86% $890 $781 $675 $719 39% 19% 28% 35% 81% 72% 65% 61% $982 33% 67% $1,053 25% 75% $1,124 21% 79% $1,203 18% 82% $1,223 16% 84% 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 2014 2015 2015 2017 21

Strong Revenue Growth GAIN ON SALE AND OTHER REVENUE INTEREST INCOME ($MM) $29 92% $36 93% $44 93% $63 $67 $68 $63 $50 $56 14% 21% 28% 30% 15% 90% 86% 79% 72% 70% 85% $70 8% 92% $77 8% 92% $82 7% 93% $93 6% 94% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 2017 22

Compelling Customer Lifetime Value ALL CUSTOMERS ACQUIRED IN 2014 Average 2.3 loans per customer through 13 quarters ($MM) $11 $9 $7 $8 3.7x+ ROI $17 $15 $13 or $174 Return 3 after 13 quarters $19 $42 $47 $34 $47 Investment Acquisition Cost 1 Contribution 2 +Q1 +Q2 +Q3 +Q4 +Q5 +Q6 +Q7 +Q8 +Q9 Through Mar 31, 2017 2014 1. Includes upfront internal and external commissions as well as direct marketing expenses. 2. Contribution is defined to include interest income and fees collected on all loans including new, repeat and line of credit loans, less acquisition costs for repeat loans, less the following items for all loan types: estimated third party processing and servicing expenses, estimated funding costs (excluding any cost of equity capital) and net charge-offs. For this purpose, processing and servicing expenses are estimated based on the mix of loan originations and outstanding principal balances. Includes all loans originated in the period. Funding cost for new and repeat loans sold is estimated based on the average on-balance sheet cost of funds rate in the period. All estimates may be adjusted in subsequent periods to reflect updated information. 3. Return on Investment (ROI) is contribution divided by initial acquisition cost. Acquisition costs include upfront internal and external commissions as well as direct marketing expenses. 4. Figures may not foot due to rounding. 23

Customer Lifetime Value Over Time ALL CUSTOMERS ACQUIRED IN 2014 AND 2015 10,000 COHORT CONTRIBUTION PER CUSTOMER 1 4.0x RETURN ON INVESTMENT 2 2014 2014 3.0x 2015 5,000 2015 2.0x 1.0x - +9 Quarters +13 Quarters -- +9 Quarters +13 Quarters 1. Contribution as defined on the previous page. 2. Return on Investment (ROI) as defined on the previous page. 3. Includes all loan types. 24

Operating Leverage Potential as LUM Scales PROVISION RATE 6.6% 5.8% 7.4% 8.7% OPERATING EXPENSE EX. SBC AS A PERCENTAGE OF AVERAGE LUM 1 Operating leverage potential as LUM scales in 2016 and 2017 20% 21% 17% 2014 2015 2016 3M '17 14% COST OF FUNDS RATE 6.2% 5.5% 5.9% 5.9% 2014 2015 2016 3M '17 P&S ex. SBC G&A ex. SBC 2014 2015 2016 3M '17 S&M ex. SBC T&A ex. SBC 1. See appendix for a reconciliation of these non-gaap measures. 25

Adj. EBITDA and Adj. Net Income (Loss) $16.2 $10.3 ($7.3) ($5.2) ($8.8) ($7.6) ($59.7) ($67.0) 2015 2016 Q1 16 Q1 17 Adjusted EBITDA Adjusted Net Income (Loss) See appendix for definitions of non-gaap measures, their limitations, and reconciliation to GAAP. 26

Supplemental Performance Metrics 27

Additional Metrics for Evaluating Performance Net Interest Margin After Credit Losses Adjusted Expense Ratio = Adjusted Operating Yield Interest Income Funding Cost Operating Expense Net Charge-offs Stock-based Comp. (SBC) Net Interest Income After Credit Losses Average Interest Earning Assets Operating Expense (Ex. SBC) Average LUM Note: See appendix for definitions of non-gaap measures, their limitations and reconciliations to GAAP. Note: Net Interest Margin After Credit Losses, Adjusted Expense Ratio and Adjusted Operating Yield are annualized metrics. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 28

Benefits of Metrics Net Interest Margin After Credit Losses Adjusted Expense Ratio = Adjusted Operating Yield Describes earnings potential (spread) of loan book Comparable to reported metrics of other finance companies Describes efficiency of operating expense base relative to LUM Should correlate with a more traditional efficiency ratio when funding mix stabilizes Describes potential operating income of LUM at scale and with no Marketplace Proxy for Return on Assets (ROA) of LUM Note: See appendix for definitions of non-gaap measures, their limitations and reconciliations to GAAP. 29

Historical Performance Net Interest Margin After Credit Losses Adjusted Expense Ratio Adjusted Operating Yield 22% 19% 20% 17% 20% 19% 19% 15% 15% 21% 20% 20% 21% 18% 17% 17% 17% 14% 1% 3% 2% 2% 1% (1%) (1%) (5%) (2%) Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Note: See appendix for definitions of non-gaap measures, their limitations and reconciliations to GAAP. Figures may not exactly foot due to rounding. 30

Appendix 31

Net Cumulative Lifetime Charge-off Ratios All Term Loans 8% 7% 6% 5% 4% 3% 2% 2012 2013 2014 2015 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 1% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 As of March 31, 2017, net charge-off as a percentage of original loan amount for all term loan originations, regardless of funding source, including loans sold through OnDeck Marketplace or held for sale on our balance sheet. 32

2015 Customer Lifetime Value ALL TERM LOAN CUSTOMERS ACQUIRED IN 2015 Average 1.8 loans per customer through 9 quarters $14 $10 2.4x+ ROI ($MM) $25 $16 or $147 Return 3 after 9 quarters $46 $60 $37 $60 Investment Acquisition Cost 1 Contribution 2 +Q1 +Q2 +Q3 +Q4 +Q5 Through Mar 31, 2017 2015 1. Includes upfront internal and external commissions as well as direct marketing expenses. 2. Contribution is defined to include interest income and fees collected on all loans including new, repeat and line of credit loans, less acquisition costs for repeat loans, less the following items for all loan types: estimated third party processing and servicing expenses, estimated funding costs (excluding any cost of equity capital) and net charge-offs. For this purpose, processing and servicing expenses are estimated based on the mix of loan originations and outstanding principal balances. Includes all loans originated in the period. Funding cost for new and repeat loans sold is estimated based on the average on-balance sheet cost of funds rate in the period. All estimates may be adjusted in subsequent periods to reflect updated information. 3. Return on Investment (ROI) is contribution divided by initial acquisition cost. Acquisition costs include upfront internal and external commissions as well as direct marketing expenses. 4. Figures may not foot due to rounding. 33

Current Debt Facilities ($MM) Borrower Maturity Date WA Interest Rate Principal Outstanding Borrowing Capacity Funding Debt 1,7 OnDeck Asset Securitization Trust II LLC May-20 2 4.7% $250.0 $250.0 OnDeck Account Receivables Trust 2013-1 LLC Mar-19 3.5% 162.3 214.1 Receivable Assets of OnDeck, LLC May-17 3.9% 100.0 100.0 OnDeck Asset Funding I, LLC Feb-20 8.0% 112.5 150.0 Prime OnDeck Receivable Trust II, LLC Dec-18 3.7% 74.6 125.0 On Deck Asset Company, LLC May-17 10.2% 68.3 75.0 3 Other Agreements Various 4 Various 27.9 27.9 4 Total Funding Debt $795.6 6 $942.0 Corporate Debt 1,5 On Deck Capital, Inc. Oct-18 5.3% $28.0 $30.0 1. Total funding debt principal. Balances and capacities as of March 31, 2017, subject to borrowing conditions. 2. The period during which remaining cash flow can be used to purchase additional loans expires April 2018. 3. On May 4, 2017, the maturity date was extended to May 2019 and the borrowing capacity was increased to $100 million. The revolving loans interest rate decreased to LIBOR (minimum of 0.75%) + 7.25% from LIBOR (minimum of 0.0%) + 9.25%. 4. Maturity dates range from April 2017 through December 2018. 5. While the lenders under our corporate debt facility and partner synthetic participation have direct recourse to us as the borrower thereunder, lenders to our subsidiaries do not have direct recourse to us. 6. Funding Debt as of March 31, 2017 was $788.0 million. 34

Non-GAAP Net Interest Margin After Credit Losses Calculation and Reconciliation $000s 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Net Interest Margin After Credit Losses Reconciliation Interest Income $195,048 $264,844 $48,699 $50,248 $48,624 $47,477 $53,479 $63,886 $71,361 $76,118 $87,111 Funding Costs (20,244) (32,448) (5,045) (4,771) (5,126) (5,302) (5,722) (8,374) (8,452) (9,900) (11,277) Net Charge-offs (71,356) (93,112) (16,110) (19,269) (16,704) (19,274) (17,041) (20,129) (23,067) (32,875) (38,267) Net Interest Income After Credit Losses $103,448 $139,284 $27,544 $26,208 $26,794 $22,901 $30,716 $35,383 $39,842 $33,343 $37,567 Divided By: Business Days in Period 252 251 61 64 65 62 62 64 64 61 62 Net Interest Income After Credit Losses Per Business Day $411 $555 $452 $410 $412 $369 $495 $553 $623 $547 $606 Multiplied By: Average Business Days Per Year 1 252 252 252 252 252 252 252 252 252 252 252 Annualized Net Interest Income After Credit Losses $103,448 $139,860 $113,904 $103,320 $103,824 $92,988 $124,740 $139,356 $156,996 $137,844 $152,712 Divided By: Average Interest Earning Assets $539,096 $783,762 $520,757 $537,819 $531,223 $555,423 $619,724 $741,226 $841,270 $930,238 $1,024,731 Net Interest Margin After Credit Losses 19.2% 17.8% 21.9% 19.2% 19.5% 16.7% 20.1% 18.8% 18.7% 14.8% 14.9% Note: See following slide for further definition, uses and limitations of this non-gaap metric. 1. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 35

Net Interest Margin After Credit Losses Net Interest Margin After Credit Losses, or NIM After Credit Losses, is calculated as our business day adjusted annualized Net Interest Income After Credit Losses divided by Average Interest Earning Assets. Net Interest Income After Credit Losses represents interest income less funding cost and net charge-offs. Interest income is net of deferred costs and fees on loans held for investment and held for sale. Net deferred origination costs in loans held for investment and loans held for sale consist of deferred origination costs as offset by corresponding deferred origination fees. Deferred origination fees include fees paid up front to us by customers when loans are funded. Deferred origination costs are limited to costs directly attributable to originating loans such as commissions, vendor costs and personnel costs directly related to the time spent by the personnel performing activities related to loan origination. Funding cost is the interest expense, fees, and amortization of deferred debt issuance costs we incur in connection with our lending activities across all of our debt facilities. Net charge-offs are charged-off loans in the period, net of recoveries. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. Management believes that using Net Interest Margin After Credit Losses is useful to analyze the lending operating performance of the business unaffected by the provision for loan losses impact of the growth in originations. In accordance with GAAP, we recognize revenue on loans over their term, but provide for probable credit losses on the loans at the time they are originated. With respect to the forward-looking guidance of this metric, OnDeck is not able to provide a reconciliation of this non-gaap measure to GAAP. Certain items that impact these measures have not yet occurred, are out of OnDeck s control and/or cannot be reasonably predicted, and as a result, reconciliation of the forward-looking non-gaap guidance measures to GAAP is not available without unreasonable effort. Our use of Net Interest Margin After Credit Losses has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: Net Interest Margin After Credit Losses is the rate of net return we achieve on our Average Interest Earning Assets outstanding during a period. It does not reflect the return from loans sold through OnDeck Marketplace, specifically our gain on sale revenue. Similarly, Average Interest Earning Assets does not include the unpaid principal balance of loans sold through Marketplace. Further, Net Interest Margin After Credit Losses does not include servicing revenue related to loans previously sold, fair value adjustments to servicing rights, monthly fees charged to customers for our line of credit, and marketing fees earned from our issuing bank partners, which are recognized as the related services are provided. Net Interest Margin After Credit Losses reflects net charge-offs in the period rather than provision for loan losses. To the extent that originations continue to grow significantly, our charge-offs will likely be lower than the probable credit losses inherent in the portfolio upon origination. Furthermore, provision for loan losses consists of amounts charged to income during the period to maintain an allowance for loan losses, or ALLL. In addition to net charge-offs, our ALLL represents our estimate of the expected credit losses inherent in our portfolio of term loans and lines of credit and is based on a variety of factors, including the composition and quality of the portfolio, loan specific information gathered through our collection efforts, delinquency levels, our historical loss experience and general economic conditions. Funding cost does not reflect interest associated with debt used for corporate purposes. 36

Non-GAAP Adjusted Expense Ratio Calculation and Reconciliation $000s 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Adjusted Expense Ratio Reconciliation Operating Expense $161,585 $193,974 $33,549 $38,193 $42,456 $47,387 $44,559 $47,528 $49,395 $52,492 $46,684 Less: Stock-Based Compensation (11,582) (15,915) (2,042) (2,316) (3,707) (3,517) (3,752) (3,910) (3,761) (4,492) (3,491) Operating Expense (Ex. SBC) $150,003 $178,059 $31,507 $35,877 $38,749 $43,870 $40,807 $43,618 $45,634 $48,000 $43,193 Divided By: Business Days in Period 252 251 61 64 65 62 62 64 64 61 62 Operating Expense (Ex. SBC) Per Business Day $595 $709 $517 $561 $596 $708 $658 $682 $713 $787 $697 Multiplied By: Average Business Days Per Year 1 252 252 252 252 252 252 252 252 252 252 252 Operating Expense (Ex. SBC) $150,003 $178,668 $130,284 $141,372 $150,192 $178,416 $165,816 $171,864 $179,676 $198,324 $175,644 Divided By: Average LUM $726,215 $1,050,50 4 $627,379 $692,490 $748,266 $835,930 $939,785 $1,020,752 $1,087,641 $1,155,687 $1,231,104 Adjusted Expense Ratio 20.7% 17.0% 20.8% 20.4% 20.1% 21.3% 17.6% 16.8% 16.5% 17.2% 14.3% Note: See following page for further definition, uses and limitations of this non-gaap metric. 1. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 37

Adjusted Expense Ratio Adjusted Expense Ratio represents our annualized operating expense, adjusted to exclude the impact of stock-based compensation, divided by Average Loans Under Management, or Average LUM. Loans Under Management represents the Unpaid Principal Balance plus the amount of principal outstanding of loans held for sale, excluding net deferred origination costs, plus the amount of principal outstanding of term loans we serviced for others at the end of the period. Average LUM is calculated as the average of Loans Under Management at the beginning of the period and the end of each month in the period. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. Management believes that using the Adjusted Expense Ratio is a useful to analyze the level of operating expenses incurred by the business compared to the level outstanding principal of loans, regardless of the funding source deployed to fund the loan. With respect to the forwardlooking guidance of this metric, OnDeck is not able to provide a reconciliation of this non-gaap measure to GAAP. Certain items that impact these measures have not yet occurred, are out of OnDeck s control and/or cannot be reasonably predicted, and as a result, reconciliation of the forward-looking non-gaap guidance measures to GAAP is not available without unreasonable effort. Our use of Adjusted Expense Ratio has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: Adjusted Expense Ratio does not reflect the potentially dilutive impact of equity-based compensation. Adjusted Expense Ratio is based on the unpaid principal balance of loans outstanding, regardless of funding source, and does not take into account the revenue earned in the period and may not correspond with the timing of the expenses incurred to originate new loans. 38

Non-GAAP Sales and Marketing (Ex. SBC) / Average LUM Calculation and Reconciliation $000s 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Sales and Marketing (Ex. SBC) / Average LUM Reconciliation Sales and Marketing Expense $60,575 $67,011 $12,675 $14,981 $15,847 $17,072 $16,548 $16,757 $16,789 $16,917 $14,819 Less: Sales and Marketing Stock-Based Compensation (3,081) (4,002) (575) (594) (1,011) (901) (888) (941) (920) (1,253) (771) Sales and Marketing Expense (Ex. SBC) $57,494 $63,009 $12,100 $14,387 $14,836 $16,171 $15,660 $15,816 $15,869 $15,664 $14,048 Divided By: Business Days in Period 252 251 61 64 65 62 62 64 64 61 62 Sales and Marketing Expense (Ex. SBC) Per Business Day $228 $251 $198 $225 $228 $261 $253 $247 $248 $257 $227 Multiplied By: Average Business Days Per Year 1 252 252 252 252 252 252 252 252 252 252 252 Annualized Sales and Marketing Expense (Ex. SBC) $57,494 $63,252 $49,896 $56,700 $57,456 $65,772 $63,756 $62,244 $62,496 $64,764 $57,204 Divided By: Average LUM $726,215 $1,050,504 $627,379 $692,490 $748,266 $835,930 $939,787 $1,020,752 $1,087,641 $1,155,687 $1,231,104 Sales and Marketing (Ex. SBC) / Average LUM 7.9% 6.0% 8.0% 8.2% 7.7% 7.9% 6.8% 6.1% 5.7% 5.6% 4.6% Note: Sales and Marketing (Ex. SBC) / Average LUM is a component of the Adjusted Expense Ratio. Management believes that using Sales and Marketing (Ex. SBC) / Average LUM is useful to analyze operating expenses incurred by the business compared to the level outstanding principal of loans, regardless of the funding source deployed to fund the loan. See slide titled Adjusted Expense Ratio in this appendix for the uses and limitations of these non- GAAP metrics. 1. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 39

Non-GAAP Technology and Analytics (Ex. SBC) / Average LUM Calculation and Reconciliation $000s 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Technology and Analytics (Ex. SBC) / Average LUM Reconciliation Technology and Analytics Expense $42,653 $58,899 $8,587 $10,206 $11,111 $12,749 $14,087 $13,757 $15,050 $16,005 $15,443 Less: Technology and Analytics Stock-Based Compensation (2,351) (3,199) (436) (504) (778) (632) (757) (887) (793) (762) (783) Technology and Analytics Expense (Ex. SBC) $40,302 $55,700 $8,151 $9,702 $10,333 $12,117 $13,330 $12,870 $14,257 $15,243 $14,660 Divided By: Business Days in Period 252 251 61 64 65 62 62 64 64 61 62 Technology and Analytics Expense (Ex. SBC) Per Business Day $160 $222 $134 $152 $159 $195 $215 $201 $223 $250 $236 Multiplied By: Average Business Days Per Year 1 252 252 252 252 252 252 252 252 252 252 252 Annualized Technology and Analytics Expense (Ex. SBC) $40,302 $55,944 $33,768 $38,304 $40,068 $49,140 $54,180 $50,652 $56,196 $63,000 $59,472 Divided By: Average LUM $726,215 $1,050,504 $627,379 $692,490 $748,266 $835,930 $939,787 $1,020,752 $1,087,641 $1,155,687 $1,231,104 Technology and Analytics (Ex. SBC) / Average LUM 5.6% 5.3% 5.4% 5.5% 5.4% 5.9% 5.8% 5.0% 5.2% 5.5% 4.8% Note: Technology and Analytics (Ex. SBC) / Average LUM is a component of the Adjusted Expense Ratio. Management believes that using Technology and Analytics (Ex. SBC) / Average LUM is useful to analyze operating expenses incurred by the business compared to the level outstanding principal of loans, regardless of the funding source deployed to fund the loan. See slide titled Adjusted Expense Ratio in this appendix for the uses and limitations of these non-gaap metrics. 1. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 40

Non-GAAP Processing and Servicing (Ex. SBC) / Average LUM Calculation and Reconciliation $000s 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Processing and Servicing (Ex. SBC) / Average LUM Reconciliation Processing and Servicing Expense $13,053 $19,719 $2,703 $3,015 $3,352 $3,983 $4,215 $4,865 $5,181 $5,458 $4,535 Less: Processing and Servicing Stock-Based Compensation (775) (1,092) (147) (156) (227) (245) (343) (211) (227) (311) (173) Processing and Servicing Expense (Ex. SBC) $12,278 $18,627 $2,556 $2,859 $3,125 $3,738 $3,872 $4,654 $4,954 $5,147 $4,362 Divided By: Business Days in Period 252 251 61 64 65 62 62 64 64 61 62 Processing and Servicing Expense (Ex. SBC) Per Business Day $49 $74 $42 $45 $48 $60 $62 $73 $77 $84 $70 Multiplied By: Average Business Days Per Year 1 252 252 252 252 252 252 252 252 252 252 252 Annualized Processing and Servicing Expense (Ex. SBC) $12,278 $18,648 $10,584 $11,340 $12,096 $15,120 $15,624 $18,396 $19,404 $21,168 $17,640 Divided By: Average LUM $726,215 $1,050,504 $627,379 $692,490 $748,266 $835,930 $939,787 $1,020,752 $1,087,641 $1,155,687 $1,231,104 Processing and Servicing (Ex. SBC) / Average LUM 1.7% 1.8% 1.7% 1.6% 1.6% 1.8% 1.7% 1.8% 1.8% 1.8% 1.4% Note: Processing and Servicing (Ex. SBC) / Average LUM is a component of the Adjusted Expense Ratio. Management believes that using Processing and Servicing (Ex. SBC) / Average LUM is useful to analyze operating expenses incurred by the business compared to the level outstanding principal of loans, regardless of the funding source deployed to fund the loan. See slide titled Adjusted Expense Ratio in this appendix for the uses and limitations of these non-gaap metrics. 1. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 41

Non-GAAP General and Administrative (Ex. SBC) / Average LUM Calculation and Reconciliation $000s 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 General and Administrative (Ex. SBC) / Average LUM Reconciliation General and Administrative Expense $45,304 $48,345 $9,584 $9,991 $12,146 $13,583 $9,709 $12,149 $12,375 $14,112 $11,887 Less: General and Administrative Stock-Based Compensation (5,375) (7,622) (884) (1,062) (1,690) (1,739) (1,764) (1,871) (1,821) (2,166) (1,764) General and Administrative Expense (Ex. SBC) $39,929 $40,723 $8,700 $8,929 $10,456 $11,844 $7,945 $10,278 $10,554 $11,946 $10,123 Divided By: Business Days in Period 252 251 61 64 65 62 62 64 64 61 62 General and Administrative Expense (Ex. SBC) Per Business Day $158 $162 $143 $140 $161 $191 $128 $161 $165 $196 $163 Multiplied By: Average Business Days Per Year 1 252 252 252 252 252 252 252 252 252 252 252 Annualized General and Administrative Expense (Ex. SBC) $39,816 $40,824 $36,036 $35,280 $40,572 $48,132 $32,256 $40,572 $41,580 $49,392 $41,076 Divided By: Average LUM $726,215 $1,050,504 $627,379 $692,490 $748,266 $835,930 $939,787 $1,020,752 $1,087,641 $1,155,687 $1,231,104 General and Administrative (Ex. SBC) / Average LUM 5.5% 3.9% 5.7% 5.1% 5.4% 5.8% 3.4% 4.0% 3.8% 4.3% 3.3% Note: General and Administrative (Ex. SBC) / Average LUM is a component of the Adjusted Expense Ratio. Management believes that using General and Administrative (Ex. SBC) / Average LUM is useful to analyze operating expenses incurred by the business compared to the level outstanding principal of loans, regardless of the funding source deployed to fund the loan. See slide titled Adjusted Expense Ratio in this appendix for the uses and limitations of these non-gaap metrics. 1. Annualization is based on business days assuming 252 business days per year, which is typical weekdays per year less U.S. Federal Reserve Bank holidays. 42

Non-GAAP Adjusted Operating Yield Calculation and Reconciliation 2015 2016 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Adjusted Operating Yield Reconciliation Net Interest Margin After Losses 1 19.2% 17.8% 21.9% 19.2% 19.5% 16.7% 20.1% 18.8% 18.7% 14.8% 14.9% Less: Adjusted Expense Ratio 2 (20.7%) (17.0%) (20.8%) (20.4%) (20.1%) (21.3%) (17.6%) (16.8%) (16.5%) (17.2%) (14.3%) Adjusted Operating Yield (1.5%) 0.8% 1.1% (1.2%) (0.5%) (4.6%) 2.5% 2.0% 2.2% (2.4%) 0.6% Note: See following page for further definition, uses and limitations of this non-gaap metric. Figures may not foot due to rounding. 1. See slide titled Non-GAAP Net Interest Margin After Credit Losses Reconciliation. 2. See slide titled Non-GAAP Adjusted Expense Ratio Reconciliation. 43

Adjusted Operating Yield Adjusted Operating Yield represents our Net Interest Margin After Credit Losses less the Adjusted Expense Ratio. Management believes that using Adjusted Operating Yield is a useful tool to evaluate the operating performance of the business unaffected by the growth in originations and regardless of funding strategy. With respect to the forward-looking guidance of this metric, OnDeck is not able to provide a reconciliation of this non-gaap measure to GAAP. Certain items that impact these measures have not yet occurred, are out of OnDeck s control and/or cannot be reasonably predicted, and as a result, reconciliation of the forward-looking non-gaap guidance measures to GAAP is not available without unreasonable effort. Our use of Adjusted Operating Yield has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: Net Interest Margin After Credit Losses uses Average Interest Earning Assets in the denominator of the calculation whereas Adjusted Expense Ratio uses Average Loans Under Management in the denominator. Subtracting one metric from the other is purely illustrative and does not reflect the operating performance of the business. Using Adjusted Operating Yield as a measure to compare Net Interest Margin After Credit Losses to Adjusted Expense Ratio assumes that loans sold through the OnDeck Marketplace are of similar origination, performance characteristics and return as loans held for investment and held for sale, which are funded on-balance sheet through our asset-backed revolving facilities, asset-backed securitization facilities, and internal equity. Using Net Interest Margin After Credit Losses as a measure to compare against Adjusted Expense Ratio assumes that the rate of return of loans funded through the OnDeck Marketplace is similar to that of our loans held for investment or held for sale. Should our Marketplace Gain on Sale Rates materially differ, both positively or negatively, this may limit the utility of comparing Net Interest Margin After Credit Losses to Adjusted Expense Ratio as a means of measuring the operations of the business. 44

Non-GAAP Adjusted EBITDA Reconciliation Adjusted EBITDA Twelve Months Ended December 31, Three Months Ended March 31, (000s) 2015 2016 2016 2017 Net Loss ($2,231) ($85,482) ($13,141) ($11,602) Adjustments: Corporate Interest Expense 306 414 38 353 Income Tax Expense - - - - Depreciation and Amortization 6,508 9,462 2,078 2,596 Stock-Based Compensation Expense 11,582 15,915 3,752 3,491 Adjusted EBITDA $16,165 ($59,691) ($7,273) ($5,162) Adjusted EBITDA represents our net income (loss), adjusted to exclude interest expense associated with debt used for corporate purposes (rather than funding costs associated with lending activities), income tax expense, depreciation and amortization and stock-based compensation expense. 45

Non-GAAP Adjusted Net Income (Loss) Reconciliation Adjusted Net Income (Loss) Twelve Months Ended December 31, Three Months Ended March 31, (000s) 2015 2016 2016 2017 Net Income (Loss) ($2,231) ($85,482) ($13,141) ($11,602) Adjustments: Net Loss Attributable to Noncontrolling Interest 958 2,524 568 544 Stock-Based Compensation Expense 11,582 15,915 3,752 3,491 Adjusted Net Income (Loss) $10,309 ($67,043) ($8,821) ($7,567) Adjusted Net Income (Loss) per share represents our net income (loss) adjusted to exclude net loss attributable to noncontrolling interest and stock-based compensation expense. 46