Smava, a “social lending” marketplace similar to Zopa in the UK, has closed a second financing round with VCs Earlybird and Hamburg-based Neuhaus Partners to the tune of 4 Million Euro. Earlybird was already a first round investor and Neuhaus Partners came in to the sceond round.
Berlin-based Smava generates revenue by collecting a one-time one percent fee on funded loans from borrowers. Lenders can use the service cost-free.
Smava has turned over some 4 million Euro in originated loans, so it’s clear that social lending marketplaces do not only work in the US, as with Prosper, but also in Germany. In fact, social lending may end up a big deal in Germany as credit has never been a popular financial vehicle (credit card use there is tiny), but “social” support is ingrained in the culture.