Funding Circle announces $65m investment

Funding Circle announces $65m investment




Funding Circle, the world's leading online marketplace for business lending today announced it has raised $65 million in a Series D funding round led by Index Ventures with participation.

Funding Circle, the world’s leading online marketplace for business lending today announced it has raised $65 million in a Series D funding round led by Index Ventures with participation from existing investors, Accel Partners, Union Square Ventures and Ribbit Capital.

The new funding will be used to continue to fuel the company’s rapid global growth, expand product ranges and explore new international markets. The platform has lent more than half a billion dollars to over 5,000 businesses.

In addition, Robert K. Steel, CEO of Perella Weinberg Partners, will join the Funding Circle board. Mr. Steel has approximately 40 years of public and private sector experience, having served as former Under Secretary for Domestic Finance of the United States Treasury, CEO of Wachovia, Vice Chairman of Goldman Sachs and Deputy Mayor of New York.

Samir Desai, CEO and co-founder of Funding Circle said: “We are thrilled to welcome Bob to our board. His expertise and experience is unparalleled. This latest round of funding will fuel our global ambitions and power the next phase of our evolution - catering for the increase in demand we expect to see over the next 12 months. Our vision is to build a better financial world, helping more small businesses access finance and offering attractive returns to investors.”

Bob Steel, Non-Executive Director of Funding Circle said: “I’m delighted to be joining the Funding Circle board. I have been impressed with the growth of the company over the past four years, and believe there is a unique opportunity for marketplace lending to revolutionize access to finance for small businesses across the globe. I hope my experience as CEO of one of America’s largest banks, and my time in the US Treasury department, will support the company as we enter the next stage of our growth.”


In total, Funding Circle has now raised $123 million in equity funding.

 

Neil Rimer, Partner and Co-Founder of Index Ventures said: “We view Funding Circle as a category-defining company that pioneered a marketplace for business loans. Its founders exemplify the new class of Fintech entrepreneurs who are combining technology and novel business models to offer much better value than banks and other incumbents have been offering their customers. Funding Circle's exciting partnership with Santander reflects the degree to which this proposition has entered the mainstream and is recognized by forward-thinking banks as a massive opportunity.”

Launched in 2010, Funding Circle is helping to spark a global revolution in the way small businesses access finance, disrupting the traditional model of banking. Since launching in the US at the end of 2013, Funding Circle has increased its lending to American businesses by 500 percent and is expected to lend $100 million by the end of 2014.

 

 

 

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