Funding  Circle

April  2015

Sam  HodgesCo-­‐Founder  &  Managing  Director,  Funding  Circle

Brig  and  Michelle  of  Slidebelts2014  Funding  Circle  borrower

Disclaimer

This document provides general and preliminary information about Funding Circle’s (FC) commerciallending platform and is intended for initial reference purposes only. It is not a summary or acompilation of all applicable information and is not complete. This document does not constitute anoffer to sell or the solicitation of an offer to buy securities by FC. There shall be no offer or sale of anysecurities by FC without the delivery of confidential offering materials (the “Offering Materials”) andrelated documents. The information contained herein is qualified by and subject to more detailedinformation in the Offering Materials, including the risk factors applicable to an investment in FC orthe loan pools.

The materials and information contained and described herein are proprietary of FC and may not bereproduced or distributed in any fashion without FC’s written consent.

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LBOs,  new  credit  markets  

Capital  market  evolution  is  non-­‐linear

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70s

Innovation  (log  scale)

LIBOR  created

Price  controls,  stagflation

Fed  funds  at  17%

80s 90s

S&L  crisis,  ‘94  bond  market  shock

Early  securitization  hedge  funds,  online  brokerages

00s 10s Beyond

Tech  bubble  

PayPal,  credit  derivatives

Global  financial  crisis

Marketplace  lending,  digital  wealth  management  

Lending:  ripe  for  change

Two  recurring  traits  of  disrupted  industries  • Middle-­‐men• Gate-­‐Keepers

Banking  has  both  and  more• Information• Access• Consumer  preference

It’s  big  – it’s  global

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Solution:  Transparency

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“I  didn’t  have  six  months  to  wait  

around  for  banks  or  the  SBA.  Thanks  

to  Funding  Circle’s  fast  and  easy  

process,  I’ve  never  missed  payroll  

and  we’re  poised  to  quadruple  our  

revenue  this  year.  For  a  small  

business  owner,  that  is  huge.  That  is  

powerful.”

Pictured:

Dorika Mamboleo BeckettFounder/CEO2014  Funding  Circle  borrower

Funding  Circle  is  the  preferred  platform  for  SMEs

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Borrowers  that  would  return  to  Funding  Circle  

before  their  bank

77%

NPS  Score

-­‐50 0 50 100

US  Banks

UK  Banks

60

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-­‐11

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Funding  Circle  Loan  Book UK  SME  Loans US  SME  Loans

Huge  addressable  market  ripe  for  disruption

Source:    Project  Merlin,  Bank  of  England,  Funding  Circle  Analysis,  Datamonitor,  FRB  Community  Reinvestment  Act

Note:    UK  SMEs  defined  as  businesses  <250  employees  US  SME  loans  defined  as  <$1m  loans  to  small  and  medium  sized  businesses  –has  been  adjusted  to  account  for  loans  >$1M  to  SMEs  (+20%)

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~$140bn

~$480bn

~$1bn

Annual  Originations

Funding  Circle:  A  global  leader  in  marketplace  SME  lendingFC  Quarterly  New

 Len

ding  ($

m)

Lending  ~$75m  per  month  (Q4  2014)

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20

40

60

80

100

120

140

160

180

200

Q3  '10 Q4  '10 Q1  '11 Q2  '11 Q3  '11 Q4  '11 Q1  '12 Q2  '12 Q3  '12 Q4  '12 Q1  '13 Q2  '13 Q3  '13 Q4  '13 Q1  '  14 Q2  '  14 Q3  '  14 Q4  '  14 Q1  '  15

FC  Originations

*Q4’14**Exchange  rate  of  $1.52  USD/GBP

Lending  over  $1B  to  thousands  of  small  businesses  since  2010Lending  ~$75m  per  month*

While  industry  growth  has  been  impressive…

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We’re  just  getting  started

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You  are  here

Marketplace  =  global

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We’re  building  a  better  financial  world