Downing Ventures and Gresham House Ventures have led a $10m (£7.7m) Series A funding round for business finance aggregator Funding Xchange.
Funding Xchange said that the funding round, which was also backed by Hambledon Capital, was over-subscribed at stable valuation despite the wider economic backdrop.
The firm said it is seeing more demand for its online matchmaking service between business lenders including peer-to-peer lending platforms and borrowers. Its technology is also being white labelled by other financial services firms.
“The current crisis has accelerated the trend towards digitisation and the use of intelligent decisioning that uses access to live data,” Katrin Herrling (pictured), chief executive of Funding Xchange, said.
“We are delighted that our investors are seeing the significant opportunity to transform small – and medium-sized enterprise lending to make funding more accessible, more affordable and more sustainable through the deployment of our intelligent infrastructure.”
Daniel Cheung, investment executive at Downing Ventures, said technology solutions such as those offered by Funding Exchange “are critical to help small- and medium-sized enterprises access finance at speed and at scale.”
Funding Xchange closed an £8m funding round in November 2019 that was also backed by Downing Ventures and Gresham House.
“Access to capital is critical for small businesses and Funding Xchange has a market leading solution to help companies get funded,” Henry Atly, investment director at Gresham House Ventures, added.