Lending Loop has announced a new $2 million round of funding. The round was led by MaRS Investment Accelerator Fund and included a group of different finance and technology investors.
The Toronto-based fintech disruptor and investing platform is going to use the new funding to roll out its new automated investing tool Auto-Lend while continuing to increase its presence as one of Canada’s premier peer-to-peer lending platforms. Product expansion may also occur later on this year.
Auto-Lend allows investors to build a portfolio of loans by choosing a pre-set strategy that matches their risk profile or by creating custom strategies to invest.
Lending Loop has helped facilitate close to $7 million in financing to small businesses across Canada with the help of its large community of over 9500 investors. Auto-Lend will help scale those numbers and introduce thousands more to higher-interest investments.
“For far too long, people have assumed the only place to put their hard-earned savings was with a traditional bank,” said Cato Pastoll, co-founder and CEO of Lending Loop. “The release of Auto-Lend means we now have an incredibly simple way for all Canadians to automatically invest their money.”
The goal of Lending Loop is to introduce investing to as many kinds of people as possible, and remove the elitist-banker stigmas that can typically come along with the sector. The company does so by being as transparent as possible, a move echoed by the launch of a new statistics page on Lending Loop’s site.
The company also announced two new members on its board of directors: Michael Kitchen and OPENLANE president Clive Kinross. These two have a strong knowledge of disrupting the fintech world and will add valuable insight to Lending Loop principles.