The company, which was set up in 2008 and launched this year in the US, offers personal loans of up to $1m secured against personal assets such as fine art, antiques and jewellery.
It has achieved triple-digit revenue growth each year over the last three years. With an average loan value of $10,000, the company has made 15,000 personal asset loans to date.
Ribbit Capital, a financial services-focused venture capital firm founded by Meyer Malka, a Silicon Valley entrepreneur who is also on the board of payday loan site Wonga, also invested in the round.
Previous investors Augmentum Capital, Eden Ventures, and Rockridge also participated in the round, which will be used to back continued expansion in the US and UK, and broaden its product range.
“The new funding will allow us to accelerate growth in the US and UK as the leading online lending and liquidity marketplace for luxury personal assets,” said borro founder and CEO Paul Aitken.
“In Canaan Partners and Ribbit Capital, we welcome new US based investors with extensive hands-on experience helping grow and transform companies in the fin-tech and luxury markets.”
Canaan, which has over $3bn under management, has made previous investments in the fin-tech space including online peer-to-peer lending exchange LendingClub and luxury e-commerce companies TheRealReal, Gemvara, OpenSky, and UK-based Onefinestay.
“We invested in borro because it’s a fast-growing company solving an enormous problem – trusted, immediate and convenient access to cash for consumers and business owners whose financial alternatives have been negatively impacted by the lending credit crunch,” said Dan Ciporin, a general partner at Canaan and a newly appointed member of borro’s board of directors.
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