British p2c lending marketplace Funding Circle announced that they have raised 10 million GBP (approx 16M US$) from Index Ventures and Union Square Ventures. Funding Circle enables individual lenders to lend to establishes businesses in the UK. Since its launch a loan volume of 28.6 million GBP has been funded. According to numbers published by Funding Circle so far only 5 out of 686 loans have defaulted giving lenders an average gross yield (annualised, compounded return lenders are earning before fees or any bad debts) of 8.4%.
Samir Desai, co-founder of Funding Circle, said: “This deal represents the next step in the growth of Funding Circle and will help us to create a lasting alternative to banks for small business loans. Index has been a prominent supporter and advocate of what the business is trying to achieve, and we are delighted to continue our partnership together. We are also excited to welcome Union Square Ventures as co-investors. They bring with them a wealth of expertise and experience …”.