Funding Circle secures one of the biggest VC deals in British history
$150m DST Global investment to cement company’s expansion in UK and US with addition of Betfair's David Yu
Peer-to-peer lending platform Funding Circle, founded by Young Guns James Meekings, Samir Desai and Andrew Mullinger, has closed a $150m deal led by venture capital (VC) firm DST Global – said to be one of the largest VC deals in UK history.
Sands Capital Ventures, Temesak and Baillie Gifford also participated in the milestone round.
Established in 2010, London-based Funding Circle specialises in connecting viable businesses with private investors and has lent over £500m to small and medium-sized enterprises to date. Featured in the prestigious Startups 100 index, the company has seen its growth climb rapidly in recent years, following an increase in demand for alternative finance, and in February 2014 secured £40m from the government-backed British Business Bank
It will now use this latest funding, which takes its total equity investment raised to date to $273m, to fuel growth in the UK and US with a target to hit $1bn lending over the year.
The announcement also comes as the company announces former Betfair CEO David Yu has joined as global chief product officer.
On the news, Funding Circle CEO and co-founder, Samir Desai, commented:
“Today’s news is the next step on our journey to creating a sustainable, category-defining business in a multi-billion dollar global market, where businesses will come to the marketplace to borrow from all types of investors. This investment, alongside prudent risk management, will ensure Funding Circle’s long term future.”