Funding Circle raises $65m; adds former Wachovia boss to board

Funding Circle raises $65m; adds former Wachovia boss to board

Funding Circle, a UK-based online marketplace for business loans, has raised $65 million in a series d financing round led by Index Ventures. In addition, the firm has added former Wachovia CEO Robert Steel to its board.

Existing investors Accel Partners, Union Square Ventures and Ribbit Capital also joined the round, which takes Funding Circle's total funding to $123 million.

Since launching in 2010, Funding Circle has facilitated more than half a billion dollars in loans to over 5000 businesses and expects to see $600 million lent through its platform this year alone.

Among its fans is the British government, which earlier this year gave the firm £40 million to distribute to businesses. Since then, a deal has also been struck with banking giant Santander, which is now referring some small business customers.

Late last year the company also entered the US market, where it expects to have lent $100 million by the end of 2014.

Samir Desai, CEO, Funding Circle, says: "This latest round of funding will fuel our global ambitions and power the next phase of our evolution - catering for the increase in demand we expect to see over the next 12 months."

Meanwhile, industry heavyweight Robert Steel has joined the Funding Circle board. Steel is currently CEO of Perella Weinberg Partners having enjoyed stints as under secretary for domestic finance of the US Treasury and boss of Wachovia.

"I have been impressed with the growth of the company over the past four years, and believe there is a unique opportunity for marketplace lending to revolutionise access to finance for small businesses across the globe," says Steel.

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