Linked Finance Raises €2m In New Funding

12 Oct 2017 | 09.20 am

Linked Finance Raises €2m In New Funding

Frontline Ventures and a group of 28 private investors stumped up funds for the P2P lender

12 Oct 2017 | 09.20 am

Irish peer-to-peer lender Linked Finance has raised €2m in a funding round led by the company’s original VC backers, Frontline Ventures. The other investors are  28 individuals who are active lenders on the platform.

Linked Finance said the finance will go towards funding expansion plans. Launched in 2013, the company has lent €34.5m to Irish SMEs, with €14m repaid to Linked Finance lenders.

Former Ryanair deputy CEO Michael Cawley was recently appointed as company chairman.

Commenting on the fundraising, CEO Niall Dorrian said the inidividual investors are people who know the platform inside out. “They know what it’s like to lend on the site and they really believe in what we do. It’s great to have them on board and also to have the continuing support of Frontline Ventures,” he added.

David Holohan, one of the private investors, commented:  “I firmly believe that this innovative form of funding will transform the SME lending landscape in Ireland over the next few years, making it easier for Irish business owners to access the capital they need to grow their businesses.”

Linked Finance booked a loss of €1.2m in the year to end April 2016, while the deficit in shareholders’ funds at year-end was €1.8m. Long-term liabilities of €2.55m are thought to largely relate to funding for the venture previously advanced by Shay Garvey’s Frontline Ventures. It invested €1m in Linked Finance in January 2016.

At the end of its financial year in 2016, Linked Finance had cash on hand of €943,000 to meet short-term creditors of €326,000.


Photo: Niall Dorrian  with Kieran Murphy, owner of Murphy’s Ice Cream, which borrowed €75,000 through the platform (Pic: Conor McCabe)

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