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The p2p lending platform's float is testing public investors current appetite for alternative finance. This week, the UK SMB lender has narrowed towards the bottom of the initial pricing range to 440p to 460p, giving a maximum valuation of £1.5bn.
But having raised more than £320m from venture capital investors, Funding Circle is also a cash-intensive business. The group spent 40 per cent of its revenues on marketing last year, including on a television advertising campaign, raising questions over whether it can sustain its rate of loan growth without continued high costs to lure borrowers and lenders on to its platform.
https://www.ft.com/content/982227e4-c174-11e8-95b1-d36dfef1b89a
