VC-backed Funding Circle plans £1bn IPO

Sky News reported that the firm has told banks it will hold a "beauty contest" to pick advisers for the transaction towards the end of the first quarter.

Sources quoted in the report predicted an enterprise value of more than the £1bn valuation achieved at the last funding round, with one source suggesting a market cap of £2bn could be possible.

The peer-to-peer lending platform has raised more than £250m over six funding rounds, according to unquote" data.

London-based VC firm Index Ventures was among the earliest backers, leading a £2.5m series-A round in April 2011 before teaming up with Union Square Ventures for a £10m series-B a year later.

The company's US launch was supported by a $37m series-C round led by Accel Partners in October 2013, and another US VC firm, Ribbit Capital, joined to provide a $65m series-D in July 2014.

Since then, Funding Circle has continued to expand internationally and has secured two additional large funding rounds. It raised a $150m series-E from global investment firm BlackRock and Singapore-based Temasek in April 2015, and an £82m series-F from all previous investors including UK investment firm Baillie Gifford and German VC Rocket Internet in January 2017.

Founded in 2010, Funding Circle is a peer-to-peer lending marketplace that facilitates investments from a wide range of individuals and financial institutions. It mainly caters to small businesses seeking capital from a wide range of investors, claiming to improve competition in the market, create jobs and reduce dependency on bank lending. Based in London, the company lent more than £1.1bn to small businesses in 2016 and announced in December 2017 that it had passed the $5bn mark for funds lent globally.

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