Funding Circle, a London, UK-based online marketplace where savers and investors directly lend to small businesses, closed a £2.5m Series A financing.
Supporters include Index Ventures, co-investors and existing shareholders.
As stated by Samir Desai, co-founder of Funding Circle, the capital will be used to accelerate marketing efforts, launch new products and to continue to innovate and improve the website.
In conjunction with the funding, Neil Rimer, co-founder and Partner of Index Ventures, will join the company’s board.
Launched in August 2010, Funding Circle enables individuals to offer money to small businesses from across the UK at a rate exceeding that of current savings or investment products. Small businesses can get quicker, lower cost loans to grow and expand.
To date, more than 4,000 businesses and savers have signed up, with £11.5m offered to businesses.
The company is backed by a group of private investors, including Andy Homer, CEO of Towergate Partnership, and Jon Moulton, the founder of private equity firm Better Capital, and former managing partner of Alchemy Partners.