Auxmoney bags $16 mln

Auxmoney has secured $16 million in funding. Foundation Capital led the round with participation from Partech Ventures, Scott Bommer and return backers Index Ventures and Union Square Ventures. Auxmoney is a a German online peer-to-peer lending marketplace.


Düsseldorf – May 13, 2014 — auxmoney, Germany’s leading online marketplace for peer-to-peer loans, where private consumers can borrow up to €25,000 directly from private and institutional investors, today announced an investment round of $16 million. Led byFoundation Capital, joined by Partech Ventures and Scott Bommer, alongside existing backers Index Ventures and Union Square Ventures. The proceeds will be used for auxmoney’s ambitious expansion plans, by further enhancing the Düsseldorf-based lending and investment platform and expanding the company’s 60-strong team.
auxmoney CEO and co-founder Raffael Johnen said the investment marked a tipping-point for peer-to-peer lending in Germany, with the market set to go mainstream. “We are about to witness a major shift in consumer behaviour towards peer-to-peer loans. As clear market leader in Germany, auxmoney is right at the forefront of this development,” he said. “With our new partners on board, we are ready to turn crowdlending into an integral and mainstream element of Germany’s consumer finance landscape.”
Founded by Raffael Johnen, Philipp Kriependorf and Philip Kamp in 2007, auxmoney is a platform which enables private borrowers to secure personal loans funded by private and institutional investors. By creating a transparent marketplace, where investors and borrowers can interact directly with each other, auxmoney eliminates the high cost and complexity of traditional bank lending. It can offer more attractive rates to borrowers by using its sophisticated proprietary scoring system, which combines in-depth consumer scoring knowledge with the latest online social and behavioural data.
The company has so far facilitated almost 20,000 loans worth $140 million to private borrowers, over 50% of which were issued in the last 12 months. auxmoney’s growth is fuelled by investors seeking attractive risk-adjusted and predictable returns on their capital, as well as borrowers looking for better rates or alternatives to traditional bank loans.
“auxmoney is perfectly positioned to capture a significant share of the German banking and investment market over the next few years,” said Charles Moldow, General Partner at Foundation Capital. “The auxmoney model works and the team proved, in a challenging environment, the capability to deliver tremendous value to both borrowers and investors.”
“We have followed the dynamic development of auxmoney closely for a while and believe auxmoney is one of the very few companies ready to transform the structure of the European consumer lending market,” said Gabriel Matuschka, Principal at Partech Ventures.
John Buttrick, Partner at Union Square Ventures, commented: “We are excited to participate in auxmoney’s Series B round. As an investor in world leader Lending Club and similar companies, we have extensive marketplace experience and believe auxmoney will grow rapidly since auxmoney is well placed to be the preeminent online marketplace for lending in Germany and beyond.”
Raffael Johnen, co-founder and CEO of auxmoney added:
“We are very excited to welcome Foundation Capital, Partech Ventures and Scott Bommer, three highly experienced partners, on board. This financing represents a natural next step in auxmoney’s accelerating growth. Our strong financial backing puts us in an ideal position to further capitalise on the enormous demand for crowdlending in Germany. Being clear market leader in Germany, with a proven track record of compelling loan performance on our platform, puts us in a unique position to service a large and partly under-serviced segment of our population. We further welcome the fact that several banks have approached us to co-operate with us. Combining their low cost of capital and reach to customers with our low process cost and underwriting expertise will be an integral part of our growth trajectory.”
About auxmoney
auxmoney is an online marketplace that connects credit-worthy borrowers and savvy investors so that both can benefit financially. auxmoney eliminates the high cost and complexity of traditional bank lending by offering a transparent marketplace where its users can directly invest in and borrow from each other. With almost 20,000 financed loans, is Germany’s leading online platform for loans from private investors to private borrowers. To date, more than 40,000 investors have invested about $140 million in private loans on auxmoney’s platform to achieve above-average returns compared to other interest-bearing products.

Find new deal opportunities, super-charge your fundraising efforts and track top managers with VCJ. Get your FREE trial! Or subscribe now!