Online business lender Funding Circle raises another $100M
Funding Circle co-founder Sam Hodges said the additional funds will support product development and ongoing loan growth.
Funding Circle, an online small-business lender, announced Wednesday that it has raised $100 million in equity capital.
With its latest funding round, the U.K.-based startup has raised $373 million since it was established in 2010. The insider round was led by Accel, a Silicon Valley-based venture capital firm.
Several other existing Funding Circle investors participated, including Baillie Gifford, a U.K. investment management company, and Union Square ventures, a New York venture capital firm.
Funding Circle plans to use the equity to support product development and ongoing growth, according to Sam Hodges, a co-founder of the company.
The equity raise comes amid growing concern about the health of online lenders — and signs of waning interest among investors.
The online business lender OnDeck has recently reported several consecutive quarterly losses amid growing concerns about deteriorating credit quality of its loans. Other consumer-focused online lenders, including Prosper Marketplace, Lending Club and Avant, have also announced executive shakeups and mass layoffs in the past year.
Funding Circle has had “no major layoffs” in the past year, Hodges said.
Through its online platform, Funding Circle made $1.4 billion in small business loans in 2016, more than twice the amount it originated a year earlier.
Kristen Broughton, “Online business lender Funding Circle raises another $100M” American Banker, January 11, 2017. Accessed via: https://www.americanbanker.com/news/online-business-lender-funding-circle-raises-another-100m