Opening up global pools of capitalSamir Desai, CEO & co-founder

>$1.5 billion has been lent to thousands of small businesses globally through Funding Circle

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

0

50

100

150

200

250

300

350

1 3 4 4 6 12 14 1421

2733

4355

65

8699

122

175

199

226

303

12 14 14 21 27 33 43 55 6480 83

111

150167 170

222

0.774

5.92744316.701954

11.343063

24.779591

31.84163256.000971

81.340363

UK US Series3Source: Funding Circle; Used GBP/USD FX of 1.52

FC Q

uart

erly

New

Len

ding

($m

) 150% growth

per annum

Exciting news: Funding Circle enters 3 new countries

Global leader in marketplace lending to small businesses

+

• Leading small business lending marketplace in 5 countries

• UK, US, Germany, Spain & the Netherlands…

• ~450 employees

• ~ $120m lending / month

• ~$300m equity capital raised

The eco-system continues to grow

What is so special about marketplaces?

Marketplace lending platforms do not hold inventory, so are significantly more capital efficient

0

2

4

6

8

10

12Capital needed to lend $100 billion per annum

1

$bn

Bank Marketplace

-20%

0%

20%

40%

60%

80%

100%

Marketplaces are delivering better customer service

US net promoter score

0%

20%

40%

60%

80%

100%

Funding Circle UK

UK banks Funding Circle US

US banks

UK net promoter score

Our model means eventually we can accept more businesses at lower cost

More loans/ data

Better marketing & acquisition costs

Higher acceptance rates

Better models & underwriting processes

Marketplaces are Faster, Better, Cheaper

Marketplace lending has arrived – true validation is being embraced by other internet marketplaces

Marketplace lending is transparent2

Financials

Loan by loan detail

Investor net returns

Marketplace lending keeps it simple – repeat, repeat, repeat

3

Manpreet DhotChief Risk Officer, Funding Circle US

Jerome Le Luel

Rahul PakrashiChief Risk Officer, Funding Circle UK

Global Chief Risk Officer, Funding Circle• 20 yrs experience in credit risk management• Global Head of Risk Analytics, Barclays

Investment, Corporate and Retail Bank.• CRO, Barclaycard (£40bn global portfolio)• Capital One, Risk & Analytics

• 14 yrs experience in credit risk management

• Prior: HSBC, American Express, Morgan Stanley, Discover Financial Services, and Oliver Wyman

• 15 yrs experience in credit risk management

• Chief Credit Officer, Amex PR & IDC

• Director, Small Business Modelling, Amex

• Director, Collections Modelling & Analytics, Amex

Small business specialist credit assessment team• Team of 37 dedicated SME underwriters

globally• 313 years combined experience

Global credit risk, analytics & underwriting team

Risk & analytics team• Team of 10 dedicated SME risk specialists

globally• 102 yrs combined experience

Torsten NahmChief Risk Officer, Funding Circle CE• 9 yrs experience in credit risk

management• Prior: Commerzbank, Allianz,

KPMG, Oliver Wyman

Leads to superior credit performance

Cumulative loss rates by year - UK portfolio

0

2

4

6

8

10

12

14

16

18

7.2

12.2

1.0

1.0

2.1

2.6

Projected returns H2 2015

Attractive and stable returns now available to investors, where previously held on bank balance sheets

$247m Lending to Date

$1,347m Lending to Date

UK US

Fee

Annual Losses

ActualNet Return

15.8% gross

10.3% gross

Marketplace lending is democratic - any investor small or big can access the same loans

INVESTORS

Funding Circle SME Income Fund

Institutional Investors

Government

Retail Investors

FC Credit Process

Random Selector

Approved loans

Rejected loans

Continued tracking and

analysis of rejected loans

Loan Applications

Who

le lo

an m

arke

tpla

cePa

rtia

l loa

n m

arke

tpla

ce4

Individual investors can lend directly to businesses through Funding Circle in 5 countries

Government can directly support small business

Funding Circle SME Income Fund allows access to global small business lending

Small business loans

The global Exchange Traded Fund of small business lending

Will be listed on London Stock Exchange

Exclusive focus on small business loans

Simple, transparent, low cost

Banks themselves are also turning to marketplace lending

Borrowers receive fast access to finance

Banks lend through marketplaces

Banks also referring leads

Banks of the future?

Retail deposit funded bank?

1.5x

Up to 1.5x leverage

33x

Marketplace lending platforms do not do maturity transformation

5

What really happened at Northern Rock?

Composition of Northern Rock Liabilities

Short term retail and wholesale deposits fled – “bank run” – matched duration ABS and Covered Bonds did not

Marketplace lending platforms that follow these principles do not pose systemic risk

>$ 5 trillion of assets

NOT a SIFI – Systemically Important Financial Institution

>$ 2.5 trillion of assets

SIFI – Systemically Important Financial Institution

Recap - principles of marketplace lending

1. Do not hold inventory – only by not holding inventory can we be truly aligned with investors and be faster, better, cheaper

2. Transparent – loan book data on every loan originated

3. Simple – repeat, repeat, repeat

4. Democratic – any investor, large or small, can buy the same loans

5. No maturity transformation – do not create systemic risk by taking short duration money and matching to longer term loans

THANK YOU FOR LISTENING