Dunstone backs online lender Funding Circle

Kasmira Jefford
Follow Kasmira
THE FOUNDERS of Carphone Warehouse, Betfair and social gaming firm Playfish have backed an online lending marketplace, which allows small businesses to borrow directly from consumers, sidestepping the banks.

Charles Dunstone, Edward Wray (top) and Sami Lababidi (bottom) invested an undisclosed amount into Funding Circle, which has offered £28.5m to small businesses since it began trading last year.

Small enterprises can borrow between £5,000 and £100,000 and can access funding within 10 days on average. Savers have earned an average gross yield of 8.3 per cent this year .

Edward Wray, co-founder of Betfair, said: “At a time when banks are reluctant to lend to small businesses and retail investors are getting poor levels of interest on their money, the timing is perfect for the Funding Circle business model.”