Peer-to-peer lending company Lending Works has closed a GBP3.5m seed funding round led by David Kyte, founder of The Kyte Group.
Kyte was a founder trader and former board member of the London International Financial Futures and Options Exchange (LIFFE), now known as NYSE Liffe and in 1985, he founded The Kyte Group, one of the world’s first algorithmic trading and clearing houses.
Kyte says: “The retail banking sector as we know it is fractured; so, as a financial services innovator-turned-investor, a P2P lender developing leading proprietary technology is a natural destination for my investments.
“Innovative technology is underpinning this personal finance revolution, just as it did in financial markets trading two decades years ago. I have been impressed by Nick and his team’s commitment to building a top quality and truly disruptive online system that will no doubt establish Lending Works as a leader in this market.
“Transparency, efficiency and straight-talking are no longer nice-to-haves, but qualities that personal finance customers have a right to demand from their financial services providers.”
Nick Harding, founder and CEO of Lending Works, says: “We are excited to have David’s backing, both as an actively involved investor and as a mentor with many years’ experience of financial services innovation behind him. David understands the pace at which the financial services sector needs to evolve continually. So far, his insight and instincts have proved invaluable as we grow our fast-moving business.”
Unlike all other peer-to-peers lenders currently operating in the UK, Lending Works’ lenders are protected by the ‘Lending Works Shield’, which includes insurance against borrower defaults, fraud and cybercrime alongside a reserve fund.
The fundraising will be used to further develop technology, recruit more team members and raise awareness of the brand in the national personal finance market.
Other investors including Max Ashton, co-founder of Meridian Equity, participated in the round.
