Funding Circle's presentation at LendIt 2014

1. Funding Circle
LendIt Spring 2014
Small business expertise,
global opportunity

2. 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

3. We know small business
STRICTLY CONFIDENTIAL

4. Funding Circle by the numbers
• Largest small business P2P lender in the world
• Exclusive focus on small business
• Only international small business P2P lender
STRICTLY CONFIDENTIAL
• $60M in backing from Accel, Index,
Union Square Ventures, and Ribbit Capital
• 160 employees globally

5. 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
STRICTLY CONFIDENTIAL

6. We’re solving this problem through a
marketplace-based approach
Institutional and
Individual
Investors
Small
Business
Borrowers
STRICTLY CONFIDENTIAL

7. “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
STRICTLY CONFIDENTIAL

8. Borrowers get access to fast, fairly-priced finance
At 89%, our borrower
Net Promoter Score is
consistently high,
especially vs. other
lenders
STRICTLY CONFIDENTIAL
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

9. 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
STRICTLY CONFIDENTIAL
$3
$26
$74
$206
$600
$0
$100
$200
$300
$400
$500
$600
2010 2011 2012 2013 2014E
Loan Originations 1
2
$Millions
$100M
In US
$500M
In UK

10. Our three-stage credit process delivers superior credit performance
STRICTLY CONFIDENTIAL

11. We’re leveraging lessons from the UK
in building out the US
STRICTLY CONFIDENTIAL
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
5
10
15
20
25
30
35
lossrate
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
lossrate
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
lossrate
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
lossrate
months
Loss Rate
Expectation
Aug ‘10 – Dec ‘10
Origination: £2.2m
Weighted Average Age: 32.6 mos
Weighted Average Time to maturity: 0 mos

12. 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%
STRICTLY CONFIDENTIAL

13. A range of investment opportunities on US marketplace
STRICTLY CONFIDENTIAL
• 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

14. 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
STRICTLY CONFIDENTIAL

15. Five Circulars
STRICTLY CONFIDENTIAL
Commerci
al property
in the UK
$500M
mark this
month
Whole
loans in th
e UK
“C” risk tie
r
in the US
$70M run
rate in the
US

16. 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