RateSetter’s latest £13m funding round gives it a £200m valuation
Round brings total funding to £40m and will be used to fuel expansion following appointment of Prudential chairman Paul Manduca as chairman
RateSetter, the peer-to-peer lender, has secured £13m in funding led by existing backers Neil Woodford and Edinburgh-based Artemis, resulting in a £200m valuation.
Launched in 2010 by Rhydian Lewis and Peter Behrens, London-based RateSetter matches individual investors looking for better returns with creditworthy small businesses and entrepreneurs looking for a loan.
The firm’s strict lending criteria means only around 15% of borrowing applications are accepted. It was the first lending platform to launch a Provision Fund, which reimburses lenders in the event of late payment or a default.
To date the RateSetter claims to have facilitated nearly £2bn worth of loans through its platform to over 350,000 borrowers, while its 54,000 registered lenders have collectively received more than £70m in interest.
In December 2015, RateSetter entered a partnership with the British Business Bank in a bid to stimulate economic growth by providing loans to small and medium-sized businesses at a commercial rate.
The round, which follows a £20m investment in 2015, brings total funding into the company to £40m and will be used to fuel expansion, with plans to launch an ‘innovative finance ISA’. It comes just days after the company received full authorisation from the FCA.
Paul Manduca, the chairman of FTSE 100 insurance firm Prudential, was recently appointed as the next chairman of RateSetter to oversee its growth ambitions.
Lewis commented: “It is important to keep up the momentum of investing in our platform and this further injection of capital, coupled with the appointment of Manduca as chairman, lays the ground for an important new phase of development for our business.”