London-based Funding Circle have announced an enormous $65m Series D funding round as they look to expand internationally.
The investment was led by Index Ventures and existing investors Accel, Union Square and Ribbit Capital also participated in the round.
It brings the total Funding Circle have raised to $123m and is one of the biggest funding rounds for a UK startup.
It might also comes as a boost for other marketplace startups as it saw the realisation of Index’s prediction that they would be investing heavily in the sector with their new $550m fund.
From London with love
Funding Circle, which provides an online marketplace for business lending, has lent more than half a billion dollars since it was founded in 2010.
Through the marketplace, small businesses can borrow directly from thousands of investors. Businesses can borrow between £5,000 and £1m, and investors earn an average return of 6.1% after fees and bad debt.
In December, it was named as one of Tech City UK’s Future Fifty companies which was designed to connect high-growth companies with expertise and tailored support.
As part of the investment, the company plans to continue its global reach. In October, they expanded to the US after they completing a $37m Series B funding round.
They bought US company Endurance Lending Networks in the process and have since increased its lending book from about $500k to $6m, a rise of 500%.
Robert K. Steel, CEO of Perella Weinberg Partners, is also set to join the Funding Circle board. Steel has previously served as former Under Secretary for Domestic Finance of the United States Treasury, CEO of Wachovia, vice chairman of Goldman Sachs and Deputy Mayor of New York.