HUB > Companies > Funding Circle
From last funding transaction in Jan-2017.
Founded in 2010, Funding Circle facilitates lending to small businesses. They apply for a loan on Funding Circle and it is then matched with investors who want to lend in Europe, UK and the US. The investor base includes individuals, local and national governments, the European Investment Bank and financial institutions. Investors can lend to a specific business or automatically allocate money using an autobid feature. Businesses repay Funding Circle with interest which is distributed to investors. Funding Circle has lent more than £2.5bn (€3.0bn) to 25,000 businesses globally, and has paid out more than £100.0m (€118.4m) in the UK, representing an annual return of approximately 7.0%.
Headquartered in London, UK, Funding Circle has expanded globally through three key acquisitions - Endurance Lending Network in 2013, LeapPay in 2014 and ZenCap in 2015. It now operates through offices in Berlin, the Netherlands and San Francisco and employs more than 600 people. It lent more than £1.1bn (€1.3bn) in 2016. Britain is the biggest market for the company with £800.0m (€947.4) of its total £1.1bn (€1.3bn) lent through the UK platform.
UK remains the European leader in peer-to-peer lending, accounting for about 85% of the European market. According to Business Intelligence, UK peer-to-peer lending is expected to grow at a CAGR of 45.0%, reaching £16.0bn (€18.6m) by 2020.
The UK peer-to-peer lending platform is crowded with more than 100 firms. The key players include Funding Circle, Ratesetter and Zopa. Founded in 2010, Ratesetter lends to a diverse range of borrowers including individuals, small and medium sized businesses and property developers, and is backed by Artemis and Woodford Investment Management. Founded in 2005, Zopa focuses on consumer peer-to-peer lending and operates in the UK and US; in December 2015, it raised £70.0m (€81.3m) in a financing round led by JPMorgan Chase & Co, valuing the company at more than £500.0m (€592.2m). Ratesetter and Zopa both provide a fund designed to protect investors from losses. Other players within the UK include Assetz Capital, Bondora, Lending Works, LendInvest, Madiston LendLoanInvest, ThinCats and Wellesley.
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