Peer-to-peer (P2P) lender Linked Finance, which is seeking to become the biggest non-bank lender to SMEs in Ireland, has raised €2 million in equity funding.
The funding round was led by the company’s original venture capital backers Frontline Ventures. In addition, 28 individual investors who are all active lenders on Linked Finance’s platform, participated in the round.
Founder Peter O’Mahony established Linked Finance in 2013 when he raised €350,000 from family and friends, along with €200,000 from Enterprise Ireland. The company enables small companies and sole traders to raise between €5,000 and €250,000 via its platform.
Linked Finance said it plans to use the funds raised to support ambitious expansion plans. The company intends to establish P2P lending as a mainstay of the SME lending landscape in Ireland; replicating the type of success that this innovative form of funding has already seen in other markets, most particularly in the US and the UK.
Since it was established in early 2013, the company has lent over €34.5 million to SMEs, with more than €14.2 million already repaid to lenders.