Funding Circle

LendIt Spring 2014

Small business expertise, global opportunity

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

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

Disclaimer

STRICTLY CONFIDENTIAL

We know small business

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Funding Circle by the numbers

•  Largest small business P2P lender in the world

•  Exclusive focus on small business

•  Only international small business P2P lender

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•  $60M in backing from Accel, Index, Union Square Ventures, and Ribbit Capital

•  160 employees globally

Banks have largely pulled out of <$1m loans to small businesses

1 Source: SBA “Small Business Lending in the United States 2012”, published July 2013 2 SBA annual data is delayed; 2013 data is expected to be available in mid-2014

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We’re solving this problem through a marketplace-based approach

Institutional and Individual Investors

Small Business Borrowers

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“The whole process is efficient, fast and user friendly – unlike my experience with the banks!”

FC Customer 1

“Applying for a Funding Circle loan is straightforward and transparent – just like the company itself.”

FC Customer 2

“I found the process quick and easy compared to banks.“

FC Customer 3

Fast and transparent process

We win borrowers based on experience

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Borrowers get access to fast, fairly-priced finance

At 89%, our borrower Net Promoter Score is

consistently high, especially vs. other

lenders

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FC NPS includes UK borrowers who drew down a loan; n = 160; High St Bank NPS takes all customers of High St Banks Source: Funding Circle NPS survey 2013; Bain 2012 NPS study

Funding Circle originations trebling each year

1 Reflects aggregate origination volume in US and UK. FC USA began originating loans in 2013. 2 Reflects four months in 2010, which represents $9.9M in annualized volume. Assumes an exchange rate of £1 = $1.5

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$3 $26 $74

$206

$600

$0

$100

$200

$300

$400

$500

$600

2010 2011 2012 2013 2014E

Loan Originations 1

2

$ M

illio

ns

$100M

In US

$500M

In UK

Our three-stage credit process delivers superior credit performance

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We’re leveraging lessons from the UK in building out the US

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0% 1% 2% 3% 4% 5% 6% 7% 8%

0 5 10 15 20 25 30 35

loss

rate

months

Loss Rate

Expectation

Jan ‘11 – Jun ‘11 Origination: £4.9m Weighted Average Age: 33 mos Weighted Average Time to maturity: 1.1 mos

0%

1%

2%

3%

4%

5%

6%

7%

8%

0 5 10 15 20 25 30 35

loss

rate

months

Loss Rate

Expectation

July ‘11 – Dec ‘11 Origination: £12.5m Weighted Average Age: 27.4 mos Weighted Average Time to maturity: 6.5 mos

0%

1%

2%

3%

4%

5%

6%

7%

8%

0 5 10 15 20 25 30 35

loss

rate

months

Loss Rate

Expectation

Jan ‘12 – Jun ‘12 Origination: £18.1m Weighted Average Age: 22.4 mos Weighted Average Time to maturity: 16.2 mos

0%

1%

2%

3%

4%

5%

6%

7%

8%

0 5 10 15 20 25 30 35

loss

rate

months

Loss Rate

Expectation

Aug ‘10 – Dec ‘10 Origination: £2.2m Weighted Average Age: 32.6 mos Weighted Average Time to maturity: 0 mos

Investors have made an average of 6.4% in the UK; returns expected to be higher at ~10-12% in the US

Note: Average net return shows expected return after fees and bad debt but before tax

In the UK, 100% of investors with a maximum of 1% exposure to any single business have earned positive returns; 70% earn over 6%

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A range of investment opportunities on US marketplace

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• Purchase loans directly •  “Pick and choose” loans, take a random distribution, or set auto-

allocation

• Secondary market expected in 2014

• Active in the US and UK

Whole Loan Marketplace

•  Open-ended Fund purchases whole loans and fractional interests •  No management or performance fee

•  Principal & interest distributions to LPs made monthly

•  Purchases loans across all sizes, terms and risk bands

FC Partners Fund I

•  To be launched summer 2014 •  Purchase fractional interests in loans through online marketplace

•  “Pick and choose,” random distribution, or auto-allocation

•  Secondary market

Fractional Marketplace

Our goal is to become the global equivalent of a small business bond market

•  Access to credit remains a problem for small businesses internationally; they are underserved by banks in almost every market

•  US regional banking market = inefficient and price of credit is high for small businesses

•  Banking system in Europe = broken

•  Lending to small businesses in developing markets = low sophistication

•  Governments are approaching us asking how Funding Circle can be applied to their markets

•  Institutional liquidity pools will lend across geographies

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Five Circulars

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Commercial property in the UK

$500M mark this

month

Whole loans in th

e UK

“C” risk tier

in the US

$70M run rate in the

US

Thank you Sam Hodges Managing Director Funding Circle USA sam.hodges@fundingcircle.com

Funding Circle 1 Union Street, Suite 210 San Francisco, CA 94111 www.fundingcircle.com

Small business expertise, global opportunity