Fintech firm quids in after hitting funds target of £1m
L Headcount may top 50 over next 18 months or so l Move comes ahead of ‘open banking’ legislation
Financial technology company Money Dashboard is set to more than double its headcount after hitting a £1 million fundraising target.
The Edinburgh-based firm, which launched its online service in 2010 with the aim of helping people keep control of their finances, said it was continuing to attract further funding following its successful crowdfunding campaign.
Money Dashboard, founded by Gavin Littlejohn, attracted investment from more than 1,300 investors in just over three weeks of campaigning on Crowdcube, which became the first equity crowdfunding platform when it launched in 2011.
The cash injection, led by fund manager Calculus Capital, will be used to fund the expansion of Money Dashboard’s 22-strong team at Edinburgh’s Codebase technology incubator ahead of “open banking” legislation taking effect in January. Its headcount is projected to top 50 in the next 18 months.
Open banking will enable consumers and small firms to share their data securely with other banks and with third parties, allowing them to compare products and manage their accounts without having to use their own bank. Money Dashboard was crowned best personal finance app 2017 at the British Bank Awards and chief executive Steve Tigar said that more than half of the investors involved in the campaign were users of its app, which is free of charge to customers.
The firm generates revenue via commission when helping consumers get better deals and from research into their spending behaviours.
Tigar added: “We’re thrilled that so many people have decided to invest in our next phase of growth. It’s fantastic to have such strong support from our growing community of users.
“With open banking just around the corner, we’re now overfunding with a view to growing even faster.”
Meanwhile, crowdfunding software specialist Sharein has reported a surge in enquiries from property developers seeking to raise capital online.
The firm, which is also headquartered at Codebase, builds online investment platforms and said developers and investment managers were seeking to “streamline” their operations and open up property deals to a wider audience.
Sharein boss Jude Cook said: “In relying on traditional capital-raising routes, they fear being left behind by new technology. At the same time UK investors are looking for new investment opportunities.” Sales at retailer Game Digital are expected to fall 5 per cent this year amid challenging high street trading, but the firm is ramping up its presence in rapidly growing e-sports markets. The group said revenue for the year to 29 July is tipped to fall from £822.5 million to £780m, having earlier said its performance would be hit by poor stock availability of Nintendo Switch. But Game is planning to tap what it calls the “significant potential” of the group’s e-sports activities.