Lendable Raises £2.5M As P2P Lending Market Shows No Signs Of Cooling

Category: Personal Loans Published: Wednesday, 17 December 2014 Written by Admin

Perhaps riding the wave of US-based Lending Club's recent $5.4 billion IPO, the UK's Lendable, which also offers a peer-to-peer lending platform for personal loans, has raised a £2.5 million seed round from a decent group of European angel investors with plenty of fintech experience.

The young startup's backers now include all three partners at London VC Passion Capital -- Eileen Burbidge, Robert Dighero, and Stefan Glaenzer -- each of whom invested on an individual basis. That's because Passion Capital's 'Enterprise Capital Fund' (ECF) structure, which means it counts the UK Government as an LP, prohibits it from investing in lending.

However, I'm told that the three partners were still convinced enough by Lendable's potential to become big that they chose to put their own money into the company anyway.

Noteworthy also is that, amongst many other investments, Glaenzer is an early backer of German fintech company Kreditech, which helps to automate credit scores based on Big Data.

In addition, Will Kirby, non-executive director of Market Invoice (which itself just picked up £5 million in new funding), also participated, as did Adam Knight, the former managing director Glencore-Credit Suisse and current executive chairman of the London-based Bitcoin exchange Coinfloor.

Now of course, P2P lending startups for personal loans isn't a new phenomenon, not least in the UK where Zopa was a very early mover in the space and more recently counts RateSetter and Lending Works as competitors.

At the start of this year, Zopa added $25 million in new funding to its balance sheet, and now totals a hefty $56.6 million in VC to date. The same month, Lending Works disclosed £3.5 million in funding pre-launch. More evidence P2P lending and London fintech remains hot.

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