Zencap
{{Short description|German peer-to-peer lending platform}}
{{Infobox company
| name = Zencap Global Services
| logo = Zencap_Global_Services_Company_Logo.png
| type = Private
| industry = Financial services
Software
| founder = Dr. Christian Grobe, Dr. Matthias Knecht
| location_city = Berlin
| location_country = Germany
| area_served = Germany, Spain, The Netherlands
| products = Peer-to-peer lending
| revenue =
| num_employees = 65
| parent = Rocket Internet
| homepage = {{official}}
}}
Zencap was a German company, operating a peer-to-peer lending platform, which allowed private savers to lend money directly to small and medium-sized businesses in Germany, Spain, and the Netherlands.{{Cite journal|last1=Neuhaus|first1=Carla|title=Woran Berliner Start-ups arbeiten|journal=Tagesspiegel|date=15 June 2014|url=http://www.tagesspiegel.de/wirtschaft/die-bank-von-morgen-woran-berliner-start-ups-arbeiten/10042386.html|access-date=12 December 2014}} Using the crowdfunding model, the company based in Berlin, Germany{{Cite journal|last1=Neuhaus|first1=Carla|title=Woran Berliner Start-ups arbeiten|journal=Tagesspiegel|date=15 June 2014|url=http://www.tagesspiegel.de/wirtschaft/die-bank-von-morgen-woran-berliner-start-ups-arbeiten/10042386.html|access-date=12 January 2015}} aimed to create a direct link between private lenders and small businesses seeking loans.{{Cite journal|last1=Hackmann|first1=Felicitas|title=Zencap is the latest investor-investment matching platform — now with credit, not equity|journal=Human Ipo|date=7 February 2014|url=https://venturebeat.com/2014/04/01/zencap-is-the-latest-investor-investment-matching-platform-now-with-credit-not-equity/|access-date=12 January 2015}}{{Cite journal|title=Rocket Internet's Credit Marketplace Zencap Will Help SMEs Ditch Bank Loans|journal=Human Ipo|date=31 March 2014|url=http://techmoran.com/rocket-internets-credit-marketplace-zencap-will-help-smes-to-ditch-bank-loans/#sthash.NDAhn3kd.dpbs|access-date=12 December 2014}}{{Cite journal|title=Zencap crea una "nueva alternativa" de financiación para las pymes andaluzas|journal=Lainformacion |url=http://noticias.lainformacion.com/economia-negocios-y-finanzas/prestamos/zencap-crea-una-nueva-alternativa-de-financiacion-para-las-pymes-andaluzas_U8Bzc9yLBFK7cwqjQFnNF5/|access-date=2015-01-12 |author1=Diximedia }} As of December 2014, Zencap had facilitated 5 million Euro in loans to small and medium-sized firms.{{cite web|title=Geld leihen von Privatpersonen: 5 Millionen Euro erfolgreich finanziert|url=https://www.zencap.de/blog/geld-privatpersonen-5-millionen-euro-finanziert-155.html|publisher=Zencap|access-date=13 February 2015}}
In October 2015, the company was merged with Funding Circle, being active on UK and US.{{cite web|title=Funding Circle is entering Europe |url=https://www.businessinsider.com/funding-circle-acquires-zencap-2015-10 |publisher=Business Insider UK|date=20 October 2015}}{{cite web|title=Funding Circle übernimmt Zencap: Fintechs als Konkurrenz für Banken |url=http://www.spiegel.de/wirtschaft/unternehmen/fintech-fusion-funding-circle-uebernimmt-konkurrenten-zencap-a-1058522.html |language=de|publisher=Spiegel|date=20 October 2015}}
Origin
The company, based in Berlin, was founded in March 2014{{Cite web|url=http://www.deutsche-startups.de/verzeichnisse/startups-a-z/zencap-deutschland-gmbh/|title = Zencap Deutschland GMBH – Informationen, Zahlen, Fakten und Nachrichten}} by Christian Grobe and Matthias Knecht, with support from Rocket Internet.{{Cite journal|last1=Drost|first1=Frank Matthias|title=Jungunternehmer finanzieren den Mittelstand|journal=Welt|date=22 May 2014|url=https://www.handelsblatt.com/unternehmen/leasing-spezial/neue-samwer-plattform-jungunternehmer-finanzieren-den-mittelstand/9931626.html|access-date=12 January 2015}}{{Cite journal|last1=Räth|first1=Georg|title=Das neue Rocket-Startup – Lendico für den Mittelstand|journal=Gruenderszene|date=31 March 2014|url=http://www.gruenderszene.de/allgemein/rocket-internet-zencap-kredite-mittelstand|access-date=10 January 2015}}
Lending
The business model resembled the US peer-to-peer lending platform Lending Club and UK-based company Funding Circle.{{Cite journal|last1=Hesse|first1=Martin|title=David gegen Goliath|journal=Der Spiegel|date=31 March 2014|url=http://www.spiegel.de/spiegel/print/d-126267984.html|access-date=12 January 2015}}{{failed verification|date=August 2015}}
Zencap facilitated small business loans from 10,000 to 250,000 euros. Zencap determined whether the borrower was creditworthy and assigned a credit grade that determined the payable interest rate and the fees. Zencap itself charged borrowers a 1% to 4.5% origination fee. The loan period ranged between 6 and 60 months while the loan could be repaid without an early repayment fee at any time.{{Cite journal|last1=Jarotschkin|first1=Viktor|title=Innovative Mittelstandsfinanzierung mit Zencap|journal=Fuer-gruender.de|date=5 September 2014|url=http://www.fuer-gruender.de/blog/2014/09/zencap-grobe/|access-date=1 January 2015}} Conditions varied between countries.
Der Tagesspiegel quoted founder Christian Grobe, "We are very strict with the risk assessment." Once approved, businesses posted their loan request on the Zencap marketplace, where private lenders were able to choose which businesses they wanted to lend money to.{{Cite journal|title=Start-Up-Schmiede will den Mittelstand finanzieren|journal=Handelsblatt|date=30 March 2014|url=https://www.handelsblatt.com/unternehmen/banken/rocket-internet-start-up-schmiede-will-den-mittelstand-finanzieren/9688612.html|access-date=10 January 2015}}
Funding Circle acquisition of Zencap
In October 2015, Zencap was acquired by UK based Funding Circle, another lending platform in Europe.{{cite news|last1=Scuffham|first1=Matt|last2=Potter|first2=Mark|title=Funding Circle expands into Europe through purchase of Zencap|url=https://www.reuters.com/article/zencap-ma-fundingcircle/funding-circle-expands-into-europe-through-purchase-of-zencap-idUSL8N12K1VX20151020|access-date=24 December 2019|agency=Thomson Reuters|issue=Financials|work=Reuters|date=20 October 2015|location=London|language=en}} Zencap was active in Germany, Spain and the Netherlands. The merge made Funding Circle one of the main peer to business lending leaders in Europe.
See also
References
{{reflist|2}}
External links
- {{Official website}}
{{Peer-to-peer lending companies}}
Category:Peer-to-peer lending companies