MarketInvoice secures £6m investment as platform funding approaches £500m
Young Guns and Startups 100 firm will use finance to broaden product range
Peer-to-peer (P2P) lender MarketInvoice has announced a £6m ($10m) investment from Northzone and co-founder of Indeed.com Paul Forster.
Launched in 2011 by Ilya Kondrashov and 2013 Young Guns Anil Sotcker and Charles Delingpole, the Startups 100 listed company is an online marketplace for small businesses to sell unpaid invoices to a pool of global investors.
To date, £475m has been traded across the platform, with £30m a month currently being raised.
The latest funding brings MarketInvoice’s total investment to nearly £13m since inception – after a £5m round of funding in late 2014 – and will be used to expand its product range and allow retail investors to lend through the platform.
This follows chancellor George Osborne’s confirmation of an ‘Innovative Finance ISA’, allowing tax free investing in peer-to-peer finance from April 2016.
Stocker commented: “Our mission is to become the destination for small businesses looking for working capital finance. This oxygen of funding for UK businesses is a poorly served market and it represents a huge opportunity.
“We want to offer small businesses easy access to their monthly funding needs, and enable investors – from institutions to individuals – to drive small business growth whilst earning a market beating return.”
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Jeppe Zink, general partner at Northzone, said: “We’ve been working with MarketInvoice for nine months and are really excited by what the team is achieving. We’re seeing great metrics around user growth and engagement.
“This is a classic example of a tech business disrupting an age-old industry and having a fantastic real world impact on its users based on a fundamentally better service. The opportunity for growth is massive.”