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Funding Circle Announces $150 Million Equity Round

by Ryan Lichtenwald on April 22, 2015

Funding Circle logo



Funding Circle is the latest marketplace lender to announce a large financing round. The $150 million equity round was led by DST Global, Ballie Gifford, a fund managed by BlackRock, Sands Capital Ventures and Temasek. The company also recently crossed $1 billion in originations and are doing $75 million per month across the US and UK.

I spoke with Sam Hodges, co-founder of Funding Circle to learn more about what this means for the company. He noted that the core areas they want to invest in are technology, systems and hiring great people. They also want to add and invest in departments such as data analytics and risk. Although they didn’t need to raise the money as they are substantially well capitalized, Sam said that they saw an opportunity to bring in a great new set of shareholders. This influx of cash and talent to the team will allow them to expand more quickly than planned.

Funding Circle also added some new faces to the team who have backgrounds in technology, small business acquisition and experience at the senior executive level. Chitra Nayak, previously COO of Salesforce’s Platform business will join as COO and David Yu, previously CEO and CTO of Betfair will join Funding Circle as Global CPO.

I also asked Sam about valuation since the round may have pushed them into the $1 billion valuation range, but Sam declined to comment. He was excited to announce the fresh investment and noted that the investors are global, long term equity investors that round out the VCs that have invested already.

This round validates Funding Circle as a major player in the small business lending space as they continue to grow originations exponentially and partner with investors.


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Marketplace Lending News Roundup – April 18, 2015

by Peter Renton on April 18, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

At LendIt this week there was well over 50 announcements so there is no shortage of news. And there was also some great write-ups on some of these announcements. Below are some of the more interesting news coverage of the week.

How Lending Club Is Shaping the Future of Small-Business Loans from Inc. – An in-depth piece on Lending Club and their small business lending program.

Funds rush to pour money into online lending from CNBC – Ari Levy on the growth of the marketplace lending space: “If you need evidence that online lending is exploding, look at the crowd at this year’s Lendit conference”.

Ranger Capital in £155m listing for loan vehicle from City A.M. – Ranger Capital will launch a new £155M fund on the London Stock Exchange.

Larry Summers’ full-throated endorsement of online lending from Fortune – “Technology based businesses have the opportunity to transform finance over the next generation” said Lawrence H. Summers.

LendIt’s significance seen in number of launches from Bankless Times – Coverage of the major news stories and launches from LendIt USA 2015.

China’s Lufax Valued at Nearly $10 Billion in Recent Funding Round from The Wall Street Journal – The marketplace lending company with the highest valuation in the world could well be China’s Lufax at $10 billion.

Why Larry Summers Thinks Alternative Lending Will Save the World from Inc. – More coverage on the Larry Summers address at LendIt USA 2015. [click to continue…]

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Wrap-Up of the LendIt USA 2015 Conference

April 17, 2015

What a week. I have been in New York putting on the latest edition of LendIt, the online lending conference that I co-founded just a couple of years ago. We had our first LendIt USA conference in New York in June 2013 with just over 350 people; in San Francisco last year we had almost […]

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Avant Launches Institutional Marketplace with Some Big Name Investors

April 13, 2015

Avant has been somewhat of a quiet achiever in the online lending space. In just over two years CEO Al Goldstein and his team have built a successful business that is set to become a dominant player. Strictly a balance sheet lender until now, Avant is launching their institutional marketplace today. And they have signed […]

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Podcast 35: Jason Jones on LendIt USA 2015

April 12, 2015

LendIt USA 2015 officially kicks off tomorrow afternoon. We have over 2,300 people signed up now (we are officially sold out) so I thought it would be useful for everyone coming to sit down with my good friend and LendIt co-founder, Jason Jones, to discuss the conference and how to get the most out of it. […]

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Marketplace Lending News Roundup – April 11, 2015

April 11, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. The Next Big Ideas in Financial Technology from the LendIt Blog – Charles Moldow’s new white paper “The Next Big Ideas […]

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The Hourglass Effect: A Seminal White Paper on the Personal Loans Market by Frank Rotman of QED Investors

April 10, 2015

It has always been a mystery to me. I have always wondered why all the banks shut down their personal loan businesses in 2008-09 but never restarted them. Even when it was obvious that companies like Lending Club and Prosper were getting good traction. When Frank Rotman, a founding partner at QED Investors, sent me […]

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Moving Towards Mainstream Acceptance

April 9, 2015

[Editor’s Note: This is a guest post by Aaron Vermut, the CEO of Prosper. Under his watch Prosper has grown from $9 million a month in loan volume to more than $250 million per month in just over two years. He was a recent guest on the Lend Academy Podcast and his interview is the most […]

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Prosper Announces $165 Million Series D at a $1.9 Billion Valuation

April 9, 2015

On the eve of LendIt last year Prosper announced their largest funding round ever – a $70 million round that valued the company at $600 million. This year, with LendIt just days away, they have upped the ante with the announcement last night of a $165 million round at a whopping $1.865 billion valuation. Prosper has […]

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Real Estate Crowdfunding Platform Patch of Land Raises $23.6 Million

April 8, 2015

Today, Patch of Land announced a large Series A financing round led by SF Capital Group with Prosper President, Ron Suber, also investing. Neil Wolfson, of SF Capital Group will be joining the Board of Directors of Patch of Land. Neil and his firm have also invested in other top marketplace lenders, including OnDeck and BorrowersFirst. […]

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