Lending Works closes £3.5m seed round led by financial services entrepreneur David Kyte
Peer-to-peer lending start-up to develop its position in the FinTech market
Early-stage peer-to-peer business Lending Works has secured £3.5m seed investment in a deal led by serial entrepreneur David Kyte, founder of the Kyte Group and former founder, trader and board member of London International Financial Futures and Options Exchange (LIFFE).
Kyte, who has 30 years background in financial services and is said to have played a part in making electronic trading a feature of global derivatives markets, was joined in the round by several other investors including Max Ashton, co-founder of equity investment firm Meridian Equity.
Launched in January 2013, London-based Lending Works says it is the first UK peer-to-peer lender to provide lenders with insurance; “Lending Works Shield”, to protect their money against borrower defaults, fraud and cybercrime alongside a reserve fund.
It plans to utilise the seed finance to further develop its technology, recruit additional team members and to help raise awareness of its brand in the national personal finance market.
Nick Harding, founder and CEO of Lending Works, said:
“We are excited to have David’s backing, both as an actively involved investor and as a mentor with many years’ experience of financial services innovation behind him. David understands the pace at which the financial services sector needs to evolve continually. So far, his insight and instincts have proved invaluable as we grow our fast-moving business.”
Discussing his investment, Kyte commented: “The retail banking sector as we know it is fractured; so, as a financial services innovator-turned-investor, a P2P lender developing leading proprietary technology is a natural destination for my investments.
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“Innovative technology is underpinning this personal finance revolution, just as it did in financial markets trading two decades years ago. I have been impressed by Nick and his team’s commitment to building a top quality and truly disruptive online system that will no doubt establish Lending Works as a leader in this market.
“Transparency, efficiency and straight-talking are no longer nice-to-haves, but qualities that personal finance customers have a right to demand from their financial services providers.”