Mike Morgan

So Funding Circle do require personal guarantees from the shareholders.

Funding Circle works on a debenture model.

So the debt is registered against the business.

It's a fixed monthly fee, fixed interest rate through the duration of the loan.

Well, it all comes down to growth.

So the company, for a number of reasons, reached a hiatus in 2014.

So pretty rapid, very typical story, rapid growth and then a plateau and

And this is the reason why I was asked to come in and take a look at the business to understand why that plateau had taken place and to assess whether there was potential to start growing again.

And I concluded there was.

But if you're trying to secure venture capital, then you want to have a good, strong growth story for a period of time.

We couldn't demonstrate that.

And that obviously has an adverse impact on valuations.

And overall, I felt that it was the best solution to use debt in the short term and then to go out for a venture raise or private equity raise at this point.

So an actual fact, coincidentally, we're just kicking off our next funding round this week.

Up to $3 million at this stage.

So, I mean, I think, you know, based on our revenue, we're currently tracking about $1.3 million in annual recurring revenue.

So, you know, the market rate is 4 to 6x, that figure.

So, you know, I guess I usually work in pounds, excuse me.

But, you know, we're probably looking anywhere between 6 and 9 million US.

Well, we're working with a corporate finance partner on this raise and that is simply because the management team here are lacking in bandwidth to lead a fundraising exercise.