A new peer-to-peer financing platform called the ‘Grid’ was launched in Dublin today, enabling local businesses, community organisations and individuals to finance specific projects through the online platform.
The Grid gives people the opportunity to finance a local business with a small loan or donate to a local community organisation.
“In all cases it is clear what the giver is giving, and in the case of lenders, what they will receive in return,” the company said.
Derek F. Butler, CEO of Grid Finance said the aim of the platform is to introduce "new and innovative financial products that serve the needs of communities throughout Ireland".
“The Grid is the first of a portfolio of modern and practical financial products Grid Finance are bringing to the market,” he said.
One of the platform's first customers, medical uniform manufacturer Happy Threads, raised € 2,000 for a marketing campaign to boost awareness of its products and brand.
"As I needed a relatively small amount, I didn't want to look for a loan from the bank. Having spoken with the team at Grid Finance, I realised peer-to-peer financing was more cost effective than using my company overdraft or credit card. The project was live on the platform for 28 days, and we raised the full € 2,000 within that time," owner Daniel Plewman said.
The platform’s funds come from lenders who choose which local businesses to lend their money to. From as little as € 5 to a maximum of 50 per cent of the loan amount, people can lend to businesses, deciding who to lend to, the amount and the interest rate.
The company is led by Butler, a former accountant with PwC who later worked as country director for Goal in Haiti.
Its chief operating officer is Seán O’Riordan, a former accountant with KPMG who worked on the liquidation of Anglo Irish Bank.
Enterprise Ireland has invested in the business as a high-potential start-up. Kilcullen Kapital Partners, the investment company led by serial entrepreneur Enda O’Coineen, has invested in the new enterprise along with angel backers Frank Doyle, a former executive with Smurfit Kappa, and Eoin O’Neill, an adjunct professor of TCD.
