London-based Funding Circle has launched in the US with $37m of investment led by Accel Partners.
The world’s leading online marketplace for business loans has joined forces with San Francisco-based business lender Endurance Lending Network.
The aim of the project is to help businesses sidestep the “broken” banking system and borrow directly from investors.
Ever increasing circles
Since launching in 2010 Funding Circle has generated over $250 million of loans, creating an estimated 10,000 new jobs in the UK.
Earlier this year the British Government injected £20 million to fund 20% of every business loan made via the marketplace.
With previous funding from the likes of Index Ventures, Funding Circle has to date raised $58 million in equity funding.
Disruptions
“Financial services is going through the most significant disruption for a generation” said Samir Desai, Co-Founder and Chief Executive of Funding Circle.
“The way businesses borrow is being transformed by eliminating the obstacles of an outdated banking system and putting owners directly in touch with investors looking to earn attractive returns.”
According to the Small Business Administration there is a $100 billion funding shortfall in the US economy with small businesses, lacking access to finance required to create jobs and accelerate economic growth.