London-based borro has targeted further growth in the UK and US after locking up £16 million of development capital.

The business launched in the UK in 2008 and in the US in 2012 and now plans to use its new funds to continue its progress in the markets.

Borro offers personal loans of up to £1 million, secured against personal assets such as fine art, jewellery and classic cars.

Canaan Partner has joined previous backers including Ribbit Capital, a venture capital firm founded by Meyer Malka, Augmentum Capital and Eden Ventures. All previous investors are following on from initial commitments in the current round.

The online lender closed its first venture round in 2008 when it secured $2.5 million. Its Series B transaction in 2011 was worth £7.5 million and saw Augmentum Capital join.

The business was profiled by sister publication SmallBusiness.co.uk in June 2011 when CEO and founder Paul Aitken revealed that he went to bed one night having watched the film The Pawnbroker and woke up in the night with the idea for online pawnbroking.

Speaking on the new funding round, Aitken says, ‘This investment comes at a pivotal time for borrow. The new funding round will allow us to accelerate growth in the UK and US as the leading online lending and liquidity marketplace for luxury personal assets.

‘In Canaan Partners and Ribbit Capital, we welcome new US-based investors with extensive hands-on experience helping grow and transform companies in the financial technology and luxury markets.’

Dan Ciporin, general partner at Canaan Partners says the firm has invested in borro because it is ‘solving an enormous problem’.

‘Canaan’s background investing in new asset classes in financial technology combined with our international experience helping start-ups from Europe, Israel and India to grow their business in the US will enable us to offer hands-on operational guidance to borro as it expands worldwide,’ he adds.