LoanBook Capital Closes €1.1m Funding Round

By Guglielmo de Stefano on Friday 23 October 2015

Alternative Lending

LoanBook Capital has raised €1.1m – the largest amount of money ever invested in a Spanish business lending marketplace.

Barcelona-based platform LoanBook Capital today has announced the closure of a €1.1m equity round. The investment increases the company’s total equity funding raised to date to €2.7 million, and it will allow the platform to develop new channels to market and innovative technologies, and to support growth in 2016.

The round was led by the Fintech investor Gustav Andersson, who will also invest an additional €2 million of lending capital through LoanBook’s marketplace. This investment is only the latest in a string of deals involving Andersson, who has already invested in a wide range of other fintech projects, including equity and debt capital investments in 3 alternative finance platforms.

The Spanish alternative finance market is one of Europe's more nascent, but with high opportunities for growth, as the marketplace lending sector’s year to date growth rate of around 100% shows. Andersson is cognisant of this potential and believes that LoanBook is the right vehicle with which to enter into the Spanish peer-to-peer lending market. He commented:

“The next phase of growth in Spanish P2P lending platforms will be driven largely by sophisticated investors and LoanBook’s institutional-quality team is uniquely positioned to benefit from this trend. I am looking forward to working with LoanBook in this exciting phase of expansion.”

Founded in December 2012, the platform has funded nearly €5 million of loans since launch, with over 100% growth in monthly credit origination during the last six months. During the last two years, LoanBook has made significant investments in order to enhance its human resources and operational capabilities. With this round, the company will be able to definitively strengthen its market presence.

LoanBook CEO James Buckland weighed in:

“We are delighted to complete this equity round and to be supported by an investor with Gustav’s expertise and entrepreneurial spirit. […] With this equity round, we are well-positioned to take advantage of this exciting market opportunity.”

Through the introduction of favourable regulation, the Spanish P2P lending sector looks poised to close the gap on other major European markets.  Mr. Buckland concluded:

“We plan to become the largest business lending marketplace in Spain, catering for investors of all types, both in Spain and overseas, and at the same time providing small businesses in Spain with a much-needed alternative to bank financing.”

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