Two German venture capital firms, Earlybird and Neuhaus Partners, have between them invested €4 million ($5.4 million) in smava, a web platform which allows individuals to arrange ‘person to person’ loans.
smava, which is based in Berlin, will use the additional capital primarily for product development, marketing and internationalisation.
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smava: €4m lent already |
With this investment smava “belongs to the leading worldwide social lending platforms, alongside internationally established companies Prosper in the USA and ZOPA in the UK,” the firm said in a statement.
The website connects individuals both looking for loans and seeking investment opportunities. Revenue is generated through a one-time 1 percent fee from the borrower when the loan is funded, while lenders use the service for free. It was launched in March 2007 and has now facilitated more than €4 million in loans.
Earlybird is a generalist venture investor, based in Germany and primarily targeting investments in German-speaking countries. This investment is made from its €127 million fourth fund, which is around 30 percent invested.
The firm is expected to raise its next fund during 2009.
Neuhaus Partners is a Hamburg-based technology-focused venture firm investing across Europe. The smava investment is made from Neuhaus’ third fund, which is now around 50 percent committed.
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