£1m New Capital Raised

It’s always pleasing to report some good news stories, particularly as we close out the year. Our client has just completed their funding round, this being the concluding element to a merge between themselves and a similar sized competitor. The capital raise is further supported by the Government’s Future Fund and will result in new capital in excess of £1 million moving into 2021.

We first worked with our client in 2018 as a pre-revenue business. We sourced and helped arrange a seven figure debt facility from a private fund, sourced early equity as well as other practical support to enable the business to start trading.

Having remained in close contact with the client, we were pleased to help through the summer and autumn, bringing in an additional £300,000 from our investors to compliment funds already committed in the merge. In addition to investment, one of our investors has accepted the post of Chairman and as a highly experienced FTSE100 CEO, he will provide strong governance and excellent advice, guidance and direction for the combined business.

Our client is an innovative low risk financial benefit provider that mirrors the well-established and already booming salary advance market in the US. Their model incorporates not just a salary advance offering, but also third-party financial planning and credit union loans and a soon to be launched E-Money Debit Card. Our client uses a tripartite agreement between the employer, employee and the Company, thus ensuring the salary advances are repaid directly from the employee’s salary.

We’ve taken part of our reward in shares and will be monitoring progress closely in the period ahead. We wish them all the best for the future.