Shares in Funding Circle, the financial technology firm, have tumbled in the first day of full trading on the London Stock Exchange.
At one point shares were down 24% from Wednesday’s flotation price of 440p.
Because it cuts out banks, Funding Circle was billed as a disruptive force in lending.
It draws on a pool of funds collected from individuals and firms. That money is then lent to small businesses which have been vetted by Funding Circle.
The firm offers loans to small businesses in the UK, the US, Germany and the Netherlands.
It is the first such lender to float on the London stock market.
Funding Circle had said the stock market listing would help “engender trust” with investors, borrowers and regulators.
The venture, which was founded in London in August 2010, plans to use the money raised on the stock market to expand into new markets.