Peer-to-peer lending platform Funding Circle extends reach across the Atlantic with $37m venture backing.
Funding Circle, a peer-to-peer online lending platform, has secured a $37m series C round to support its expansion into the US.
The financing into the UK-based lending business was led by venture firm Accel Partners, with new investor Ribbit Capital joining existing backers Union Square Ventures and Index Ventures. The latest round brings the funding total up to $58m.
The platform, which over the past 12 months has helped over 1,800 business access £110m ($178m) from 20,000 investors, is seeking to undermine the banking sectors dominance on small business loans following the financial crisis of 2008. It also provides universities with a new way to invest, as demonstrated by Funding Circle’s partnership with Huddersfield University. The UK University has so far invested £100k ($162k) into 400 firms through the platform, with interest earned back earmarked for student scholarships.
The series C funding will go to support the launch of Funding Circle US, which aims to cut out the banks from small business loans by offering £5k to £1m loans where lenders can spread the risk by putting up small amounts of money into a large number of businesses.
Samir Desai, chief executive at Funding Circle, said: “The way businesses borrow is being transformed by eliminating the obstacles of an out-dated banking system and putting owners directly in touch with investors who are looking to earn attractive returns. Today is a landmark step to achieving our vision of helping many millions of companies around the world access finance in a faster and easier way than through their bank.”
