British Fundingcircle.com has announced the closing of Â£2.5m of Series A financing from Index Ventures, co-investors and existing shareholders.
Since Funding Circle launched in August 2010, more than 4,000 businesses and savers have signed up, with 11.5 million GBP offered to businesses to date. Currently, lenders have collectively earned 120,000 GBP in interest with average yields of 8.3% with access to their funds through Funding Circleâ€™s secondary market. fee from lenders and 2% fee from borrowers. Yield is calculated before fees, tax deductions and bad debt. To date, no businesses have defaulted on loans and therefore no bad debt has been incurred by any lender.
Samir Desai, co-founder of Funding Circle, said: â€œWe are delighted to welcome such a prominent and well respected investor as Index Ventures as a shareholder in Funding Circle.â€