LendingCrowd Secures £2M Funding For Ongoing Growth
After a strong 2017 Lending Crowd, the innovative Peer-to-peer (P2P) funding company, has secured £2 million of new funding, to drive sales and marketing for ongoing growth.
LendingCrowd, the only Peer-to-Peer (P2P) lending platform headquartered in Scotland, is looking forward to a successful year ahead, after the fintech company completed deals worth a total of around £16 million to SMEs across the UK over the last 12 months.
Following this record start to the year, CEO and co-founder Stuart Lunn has set a target of approximately £40m in 2018, more than double the company’s record to date.
The company’s latest round of funding was led by the Equity Gap angel syndicate and included several notable private investors from Scotland’s entrepreneurial and finance scene, as well as the Scottish Investment Bank.
LendingCrowd is now hoping to scale significantly over the course of 2018 and intends to seek Series A funding in the next 12 months.
Investor funds on the platform have grown rapidly, with much of the expansion attributed to the launch of one of the first Innovative Finance ISA (IFISA) products in February 2017. After a full 12 months of opening the LendingCrowd Growth ISA, 82% of investors have beaten the advertised 6% target return.
As part of its drive to build market position, LendingCrowd recently launched its first television advert to, bring the opportunities of P2P lending to a wider audience.
LendingCrowd, which is fully authorised by the Financial Conduct Authority, has over 4,500 investors signed up to its platform and is on track to significantly increase investor numbers this year. It now offers three IFISA products – the passive Growth ISA, the Income ISA and the active Self Select ISA.
Next Phase of Growth
Stuart Lunn, LendingCrowd CEO and co-founder, said: “Having laid solid foundations for the business over the last couple of years, we now have a position in the market that is starting to pay dividends. We have a strong pipeline of both investors and SME demand and with such a strong trajectory, we are now actively speaking to the venture capital and private equity communities about our next phase of growth.”
Jock Millican from Equity Gap said: “We are extremely pleased that our syndicate members once again backed LendingCrowd, with this raise being the largest single investment by Equity Gap to date. Existing and new investors in LendingCrowd recognise the progress to date and the potential for the business to scale.”
Kerry Sharp, director of the Scottish Investment Bank, commented: “We are delighted to provide continued support to LendingCrowd who have demonstrated real market traction with their innovative peer-to-peer lending platform in Scotland.”