Economy & Politics

FintechFunding Circle and Co. – the crisis of the credit platforms

Playing with startup clichés: Founder of Funding Circle Samir Desaiimago / Stella Pictures

The British start-up Funding Circle is currently worth around £ 260 million, as much as some up-and-coming fintechs in the start-up phase. The share price of CEO Samir Desai’s credit platform has fallen year after year since the IPO, when the company was once valued at more than £ 2 billion. “Samir is a really good founder, if he can’t do it with his team, who can do it?” Says another fintech founder who knows him well.

Funding Circle was one of the hyped peer-to-peer platforms. The principle: Small investors can give loans directly to small and medium-sized companies or private individuals. In return, you receive higher interest, sometimes twelve percent. Well-known companies in the industry have already had difficulties in recent years, but the corona crisis hit fintechs even more severely.

You can read the background to the crisis today on Finance Forward, the new finance portal from Personal-Financial.com and OMR. You can register for the daily newsletter here.

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