Downing Ventures Invests £3.5m in Funding Platform for SMEs

Downing Ventures has completed a $10 million Series A investment round in Funding Xchange with the closure of the second tranche of financing co-led with Gresham House Ventures, and additional funding from Hambledon Capital. Funding Xchange is a business funding marketplace that unblocks access to business finance for SMEs. During the Covid-19 crisis, this has been particularly important in keeping both vulnerable and established businesses operating.  


Funding Xchange was founded in 2014 to transform the SME lending market with the core aims of making SME finance more accessible, affordable, and sustainable. The unique technology at the heart of Funding Xchange delivers quotes to SMEs in three minutes, decisions in five minutes and funds in the bank in 10 minutes.  


Funding Xchange is now white labelling and deploying its technology to banks and lenders to dramatically reduce service costs.  The proven technologies embedded in the platform deliver 60-70% cost savings for established and challenger banks looking for operational efficiencies but also the ability to adapt to changing market conditions and enhance the customer experience. Finally, the analytics insights at the centre of the Funding Xchange model enable the business to support banks and lenders in the assessment of their product mix and portfolio. 


With government intervention loans to support COVID-19 impacted businesses, Funding Xchange is particularly well placed to address both the provision of funding and the intelligent management of flexible repayment programmes. 


Co-founder and CEO of Funding Xchange, Katrin Herrling, said: “The current crisis has accelerated the trend towards digitisation and the use of intelligent decisioning that uses access to live data. We are delighted that our investors are seeing the significant opportunity to transform SME lending to make funding more accessible, more affordable and more sustainable through the deployment of our intelligent infrastructure.”  


Leading the investors, Daniel Cheung from Downing Ventures commented: “In the current economic climate, it is apparent that technology solutions are critical to help SMEs access finance at speed and at scale. Funding Xchange continues to play an important role in driving innovation in this market. Downing Ventures has been impressed with Katrin and the team’s ability to navigate these uncertain times and remains hugely supportive of the potential of Funding Xchange.” 


Henry Atly from Gresham House Ventures who co-led the funding round, added: “We are very excited to continue backing Katrin and the Funding Xchange team as they transform SME lending. Particularly at the current time, access to capital is critical for small businesses, and Funding Xchange has a market leading solution to help companies get funded.” 




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