Lending Works has closed a £3m Series A funding round, on-boarding a high profile backer in the process.
Lending Works was the first platform to splice together the peer-to-peer lending model and insurance coverage, a marriage later emulated by secured and insured business lender ArchOver. The £3m Series A round was led by NVM Private Equity, which committed £2m in June of this year to complete the fundraise, following earlier investments from an existing institutional shareholder.
NVM currently holds over £300m in funds under management. The firm specialises in SME investments between £2m and £10m, and has invested in over 270 SMEs in the UK.
Lending Works is calling the investment round a “timely boost” ahead of the launch of its Innovative Finance ISA. Lending Works, like the vast majority of other peer-to-peer lenders, continues to await full authorisation from the FCA – and will not be able to open up its IFISA until fully authorised. However, a survey of the platform’s lenders in April revealed that 89% of respondents planned to take advantage of the product once live.
With £3m in the bank, Lending Works also expects to confirm new partnerships, announce key hires and to introduce new loan products. Lending Works is one of the younger peer-to-peer platforms in the consumer lending sector. The platform has lent a little over £30m to date, according to the Liberum AltFi Volume Index UK.
“We’re delighted to announce the recent investment in our business by NVM Private Equity. They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company. This latest investment comes at an exciting time for Lending Works.”
“We’re expecting to launch our new IFISA imminently, which will allow lenders to earn tax-free returns through our platform. Needless to say, it sets the foundations for continued growth which will be well supplemented - and driven - by this new investment.”