What Asian fintech firms can learn from UK startups about crowdinvesting

Photo credit: Michal Jeník.

For the last six months, five British fintech firms raised US$8.6 million from their current and future clients via crowdinvesting (equity crowdfunding) platforms. These stories were positively received by the investing community because they are not simply about “raising a million dollars in the market,” but are about convincing your clients and inspiring them to risk their money to help build your service.

This case is a good example to follow not only for neobanks, but also for other fintech companies.

Fintech startups raising millions

In 2016, London-based neobank Tandem was able to raise more than US$30 million, with Ebay founder Pierre Omidyar as one of its investors. Earlier that year, the bank had raised over US$1 million in a crowdfunding campaign on Seedrs at US$80.7 million valuation—in just 15 minutes. It had also offered its shares to its clients “in return for their advice on products and strategies.”

Also in 2016, Monzo received over US$15 million in funding from Passion Capital and angel investors at a valuation of US$62 million. The mobile bank had raised more than a million dollars in just 96 seconds on crowdfunding platform Crowdcube.

Revolut, launched in 2015, is a provider of mobile foreign currency exchange services. In July, it had raised nearly US$10 million in Series A funding led by Balderton Capital and offered around US$1.2 million on Crowdcube.

Go Henry hit a crowdfunding record when it raised almost US$5 million, nearly double their target, with over 2,000 investors who would get 15.9 percent equity in the company.

Kwanji, a market payment service provider, exceeded its initial target by 123 percent in its first crowdfunding round. It raised over US$600,000 on the UK equity crowdfunding platform Syndicate Room.

Squirrel, a personal finance app, is also looking to raise nearly half a million dollars on the same platform. According to Syndicate Room, the funding round will be led by angel investor Jos Evans who had already promised the company over US$120,000.

New Zealand-based Squirrel Group raised US$3 million on Snowball Effect. CEO John Bolton had announced that “there had been US$4 million of pre-registered interest from the company’s customer base who are likely to fill the US$2 million available through the retail side of the offer. Although the campaign has yet to reach its US$4 million goal, Snowball Effect stated that it is considered the largest raise ever through an equity crowdfunding marketplace in New Zealand,” Crowd Fund Insider reports.

Fintech support through crowdinvesting