Small business lending platform Funding Circle has raised $100 million in equity capital. Accel led the round, which included participation from existing investors Baillie Gifford, DST Global, Index Ventures, Ribbit Capital, Rocket Internet, Sands Capital Ventures, Temasek, and Union Square Ventures. The infusion brings the platform’s total equity funding to $373 million.
The announcement continues where 2016 left off. Funding Circle’s fourth quarter total of $485 million lent to businesses is a record amount for any SME direct lending platform, the company claims. That total represents 90 per cent yoy growth and allowed the company to reach profitability.
“Today’s news is the next step on our journey to create a category-defining company that helps thousands of small businesses access finance and create jobs,” Funding Circle cofounder and CEO Samir Desai said. “Over the next 12 months, lending through the Funding Circle platform will create a further 50,000 new jobs, supporting economic growth in the U.K., U.S. and continental Europe.”
In a release Funding Circle said it lends funds from investors including 60,000 individuals, local and national governments, the European Investment Bank, and financial institutions like pension funds.