Alternative lending platform Student Finance nets €1.15m

Student Finance, a startup offering students an alternative to a loan, has reportedly raised €1.15m in a funding round.

The round was led by seed-stage investors Mustard Seed Impact and Seedcamp, according to a report from FinTech Futures. Other contributions came from angel investors including Farfetch founder José Neves, trivago founder Rolf Schroemgens, European Innovation Council advisory board member Carlos Oliveira and others.

The FinTech offers students an Income-Share Agreement (ISA) which sees them pay a fixed percentage of their income for a set period of time, instead of paying a tuition fee upfront or through a loan. Payments are capped, which means a student will never pay more than their amount.

Students are not exclusively evaluated on their current financial situation but also on their potential to succeed.

For every student it funds, the FinTech contributes to the education and mentorship of a girl in Africa, the company said.

Seedcamp has made a number of investments in FinTech this year. The firm contributed to the £10m funding round of small business lending platform Uncapped earlier in the month. Uncapped offers businesses in Europe quick access to loans between £10,000 and £1m.

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