We were really pleased to announce a large equity investment into Funding Circle last month. New investors include DST Global, who have invested in companies such as Facebook, Twitter, Airbnb and Alibaba. The money will ensure we continue to improve our offer for both borrowers and investors; helping more businesses borrow in the US and UK, and improving the investment experience for all investors. Investors have now lent $1 billion collectively to small businesses in the UK and US, so thank you for your continued support and lending. You can read the full press release here and find more coverage in the New York Times, Wall Street Journal and TechCrunch. If you have any questions, please get in touch.
We were also pleased to welcome David Yu and Chitra Nayak to the team. David is the former CEO and CTO of Betfair and joins us as Global Chief Product Officer. He will oversee both technology and product going forward and we look forward to introducing you to him soon. Chitra joins us from Salesforce and is our new Chief Operating Officer in the States. Our CEO, Samir Desai, was on CNBC and Bloomberg to discuss the news.
‘I invested £4k in peer-to-peer lending’: Fed-up savers turn to riskier investments – we weigh up the alternatives tempting them
As people continue to look for more attractive returns, the number of investors that are tempted to cut out the banks and look towards peer-to-peer lending platforms continues to rise. In 2014, individuals lent £1.2 billion via peer-to-peer, or marketplace, lending; nearly double the amount in 2013. This article takes a look at what is on offer right now and highlights the benefits of using an online marketplace like Funding Circle, including the ability to access your money early and sell your loan parts onto other investors. Remember your capital is at risk, and returns can go down as well as up.
Last month our team attended LendIt, the largest conference dedicated to connecting the global online lending community, which has grown immensely over the past year. In this article, Larry Summers, Former US Treasury secretary and speaker at LendIt, talks about his views on regulation, and some key principles on the best way forward. He also highlights the importance of transparency. At Funding Circle, we believe transparency builds trust, which is why you can download our full loanbook here. If you need more evidence that the online lending market is exploding, just take a look at the crowd at this year’s conference on CNBC.
This article is about the story of James Hutchins, and how he borrowed money for his business, James Chocolates, through the Funding Circle marketplace. More than 2,500 investors have lent £166,000 to artisan chocolatiers in the past year. Great news for all of you chocolate lovers out there. Remember, it’s important to lend small amounts to hundreds of businesses at Funding Circle in order to minimise risk.
In a bylined article in the Guardian by small business champion, Karen Mills, who was Administrator of the Small Business Administration in the US, we hear why support for marketplace lending platforms is so key. She acknowledges that the future of small business finance isn’t going to come solely from traditional banks. There are now many options for small business owners looking to grow and expand, and the challenge going forward is to raise awareness of these.