Index invests £2.5m in Funding Circle

Index was impressed by the progress Funding Circle made since its inception, and belives it has the potential to transform the way small businesses are financed.

The fresh capital will be used to accelerate Funding Circle's marketing efforts, launch new products and further improve the website.

Company
Launched in 2010, Funding Circle is an online marketplace enabling savers and investors to lend directly to small businesses. Businesses can borrow between £5,000 an £75,000, for either one or three years, and repay their loans monthly. Each loan is comprised of small amounts of borrowing from many different individuals who compete to offer a better rate.

Funding Circle has enabled small businesses to borrow £11.5m to date. Lenders receive 8.3% yields on average, and no businesses have defaulted so far.

The London-based company receives a 1% fee from lenders and 2% fee from borrowers.

People
Neil Rimer led the deal for Index Ventures; he will join the company's board following the investment.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Expansion
• Financials
• Index Ventures