Shares in Funding Circle, which allows individuals to lend money to small businesses, have dived after it halved its forecasts for revenue growth.
The peer-to-peer lender said the “uncertain economic environment” had damaged demand for loans.
As a result, the company now expects revenues to grow by 20% this year, down from its previous forecast of 40%.
The company’s share price fell by 25% when trading began on Tuesday, before recovering slightly to stand 16% lower.
The firm listed on the London Stock Exchange late last year. However, the shares have fallen a long way from the flotation price of 440p and on Tuesday were trading at about 130p.
“The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria,” said Funding Circle’s chief executive, Samir Desai.