Funding Circle
April 2015
Sam HodgesCo-‐Founder & Managing Director, Funding Circle
Brig and Michelle of Slidebelts2014 Funding Circle borrower
Disclaimer
This document provides general and preliminary information about Funding Circle’s (FC) commerciallending platform and is intended for initial reference purposes only. It is not a summary or acompilation of all applicable information and is not complete. This document does not constitute anoffer to sell or the solicitation of an offer to buy securities by FC. There shall be no offer or sale of anysecurities by FC without the delivery of confidential offering materials (the “Offering Materials”) andrelated documents. The information contained herein is qualified by and subject to more detailedinformation in the Offering Materials, including the risk factors applicable to an investment in FC orthe loan pools.
The materials and information contained and described herein are proprietary of FC and may not bereproduced or distributed in any fashion without FC’s written consent.
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LBOs, new credit markets
Capital market evolution is non-‐linear
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70s
Innovation (log scale)
LIBOR created
Price controls, stagflation
Fed funds at 17%
80s 90s
S&L crisis, ‘94 bond market shock
Early securitization hedge funds, online brokerages
00s 10s Beyond
Tech bubble
PayPal, credit derivatives
Global financial crisis
Marketplace lending, digital wealth management
Lending: ripe for change
Two recurring traits of disrupted industries • Middle-‐men• Gate-‐Keepers
Banking has both and more• Information• Access• Consumer preference
It’s big – it’s global
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Solution: Transparency
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“I didn’t have six months to wait
around for banks or the SBA. Thanks
to Funding Circle’s fast and easy
process, I’ve never missed payroll
and we’re poised to quadruple our
revenue this year. For a small
business owner, that is huge. That is
powerful.”
Pictured:
Dorika Mamboleo BeckettFounder/CEO2014 Funding Circle borrower
Funding Circle is the preferred platform for SMEs
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Borrowers that would return to Funding Circle
before their bank
77%
NPS Score
-‐50 0 50 100
US Banks
UK Banks
60
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-‐11
89
Funding Circle Loan Book UK SME Loans US SME Loans
Huge addressable market ripe for disruption
Source: Project Merlin, Bank of England, Funding Circle Analysis, Datamonitor, FRB Community Reinvestment Act
Note: UK SMEs defined as businesses <250 employees US SME loans defined as <$1m loans to small and medium sized businesses –has been adjusted to account for loans >$1M to SMEs (+20%)
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~$140bn
~$480bn
~$1bn
Annual Originations
Funding Circle: A global leader in marketplace SME lendingFC Quarterly New
Len
ding ($
m)
Lending ~$75m per month (Q4 2014)
0
20
40
60
80
100
120
140
160
180
200
Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 ' 14 Q2 ' 14 Q3 ' 14 Q4 ' 14 Q1 ' 15
FC Originations
*Q4’14**Exchange rate of $1.52 USD/GBP
Lending over $1B to thousands of small businesses since 2010Lending ~$75m per month*
While industry growth has been impressive…
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We’re just getting started
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You are here
Marketplace = global
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We’re building a better financial world