Business Lending and Funding Circle

bn: Analysts said Funding Circle, which collects a pool of funds from individuals and companies that it lends out to small businesses, was overvalued and questioned its claim to be a disruptive force in business lending, according to The Guardian. The flotation valued the company at 1.5bn but by the end of Wednesday its market valued had fallen to 1.25bn. The shares fell 24% from the float price of 440p to a low of 334.5p on Wednesday before recovering slightly to end the day at 365p. The collapse wiped millions from the paper fortunes of the company's three founders, who owned 17% of the firm. Russ Mould, an investment director at AJ Bell, said the eight-year-old company was priced too high. Samir Desai, James Meekings and Andrew Mullinger, all aged 35, sold a quarter of their combined holdings in the initial public offering IPO . The founders had originally hoped their collective stakes would be worth 280m, but by the end of Wednesday they were worth 213m. (news.financializer.com). As reported in the news.