London-based online lending platform, SPRK Capital, has secured £3.5 million (approximately €4 million) in a fresh round of funding. The round, led by a UK asset manager with a focus on social impact, represents a substantial increase over SPRK’s seed round in October 2021 and demonstrates the company’s commitment to sustainability.
SPRK Capital, which has been providing loans since 2022, has experienced significant growth and recently launched its Grant Advance product to assist UK small and medium-sized enterprises (SMEs) with the promptness of their grant payments.
This funding follows SPRK’s announcement of a £50 million institutional funding facility earlier in the year and its appointment as the worldwide servicer of the Fundsquire loan portfolio in November 2022. Fundsquire was the largest lender in this market in the UK.
The recent funding will enable SPRK Capital to offer non-dilutive debt solutions to innovative startups, providing them with much-needed financial support without requiring equity stakes. The company aims to bridge the funding gap for startups that face challenges in accessing traditional sources of financing.
SPRK Capital’s online lending platform simplifies the borrowing process with its digital-first approach, allowing startups to apply for loans quickly and efficiently. The company’s commitment to sustainability is evident through its focus on the innovation sector, which plays a vital role in developing sustainable solutions for various industries.
The UK asset manager leading the funding round recognizes the importance of supporting innovative startups and the positive social impact they can make. By providing non-dilutive debt solutions, SPRK Capital can help startups accelerate their growth, develop new products and services, and contribute to job creation and economic growth.
SPRK Capital’s Grant Advance product addresses a common challenge faced by SMEs, ensuring they receive timely grant payments. This solution helps SMEs manage their cash flow effectively and maintain their operations without disruptions.
With the latest funding, SPRK Capital aims to expand its lending activities, reach a broader pool of startups, and continue supporting the innovation sector. By providing access to non-dilutive debt, the company empowers startups to pursue their ambitious goals and drive positive change in their respective industries.
The success of SPRK Capital in securing significant funding reflects the confidence investors have in the company’s business model and its dedication to sustainability. As the innovation sector continues to thrive and create opportunities for entrepreneurs, SPRK Capital’s online lending platform offers a much-needed lifeline for startups seeking financial support.
Overall, SPRK Capital’s latest funding round demonstrates the growing recognition of the importance of supporting the innovation sector and the role online lending platforms can play in facilitating access to capital for startups. With its non-dilutive debt solutions and commitment to sustainability, SPRK Capital is well-positioned to make a meaningful impact on the growth and success of innovative startups across the UK.
