Over 57,000 UK citizens have joined Funding Circle with over £165 Million lent to British businesses. Now the Peer-to-Peer platform is getting bigger and they have received $37 Million in a Series C round led by Accel Patners. Additional investors included Union Square Ventures, Index Ventures and Ribbit Capital. The company has raised $58 Million in equity since inception.
Funding Circle is a small business lending platform where it facilitates small business owners borrowing on fair terms while investors capture reliable returns. With Banks burdened by excessive regulation and hesitant to support job creating small companies the Peer-to-Peer lending industry has moved quickly to fill the vacuum. Funding Circle having generated great success in the United Kingdom is now expanding into the United States. In the UK the British government has utilized the platform to help finance small business due to the stagnant environment. The company recently announced a partnership with San Francisco based company Endurance Lending Network.
Small businesses in the United States may borrow up to $500,000. In the UK companies may borrow from £5000 up to £1 Million. UK average returns for investors presently run at 5.8%, a respectable return in the current low interest rate environment. A borrower may complete a loan request in less than an hour which is a stark contrast to the traditional bank process.
Funding Circle was co-founded by CEO Samir Desai, CMO James Meekings and Andrew Mullinger. The company lists an impressive list of investors including The Carphone Warehouse founder Charles Dunstone, Ed Wray co-founder of Betfair and Jon Moulton founder of private equity group Better Capital.