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TOP 10 UK 2018 FinTech PE and VC Investment deals

1.  BGL Group – InsurTech (PE)

Deal: $910 million

What they do: BGL Group is a leading digital distributor of insurance and household financial services, which owns brands including comparethemarket.com, LesFurets.com and online life insurer BeagleStreet.com. (CPPIB)

Valuation/Interesting Fact: BGL’s £2.25 billion valuation values the business at nearly 18 times its most recent annual adjusted earnings. (PENEWS)

Founder: Douw Steyn

 

2. Revolut – Challenger Bank (VC)

Deal: $250 million

What they do: The London-based firm provides a debit card that allows people to spend money in 150 currencies with no fees at a real-time exchange rate. It has since expanded services to offer a current account, cryptocurrency trading and insurance. (CNBC)

Valuation: Revolut has now raised $340 million since it launched in 2015 and is now valued at $1.7 billion (CNBC)
Interesting Fact: The company has added features that allow customers to instantly buy and sell cryptocurrencies as well as a savings app for rounding up spare change from daily transactions. They are currently experiencing between 6,000 and 8,000 new customers sign ups every day (Finextra)

Founders: Nikolay Storsnoky and Vlad Yatsenko

 

3. Greensill Capital – Supply Chain Financing (PE)

Deal: $250 million

What they do: Founded in 2011, Greensill provides businesses with alternative sources of funding, allowing them to provide suppliers with the opportunity for faster payment, while at the same time preserving their own capital position. Greensill has facilitated payments to 1.5 million suppliers and provided over $40 billion of financing across 50 countries since inception. (Finextra)

Interesting Fact: Greensill previously led the global supply-chain finance businesses of Morgan Stanley and Citibank, before setting up his company. (SCF briefing)
With its fully integrated technology and funding solutions, thecompany has a competitive advantage in the underserved supply chain finance market, where $3.5 trillion of working capital is locked up at any given moment,” (PEhub – Gabriel Caillaux)

Founder: Lex Greensill

 

4. Atom Bank – Challenger Bank (PE)

Deal: $208 million

What they do: Atom Bank are entirely app-based, without any physical branches. They offer fixed-term savings accounts (Fixed Savers) and mortgages, all through your smartphone or tablet. They’ve also launched business loans currently available through a small panel of brokers. (Atom Bank)

Interesting Fact: The company which interfaces with customers via the web but also through iPhone and Android apps, says it now has £1.3 billion in deposits, and it has loaned £1.2 billion in the form of mortgages and SMB loans (Tech Crunch)

Founders: Mark Mullen and Anthony Thomson

 

5. Monzo – Challenger Bank (VC)

Deal: $111 million

What they do: A bank that lives on your smartphone and built for the way you live today. Since they started they’ve been busy building the best current account in the world. They now have more than one million customers using their debit cards to manage their money and spend around the world.

Interesting Fact: Monzo said it now has more than one million customers and counts for 15pc of all new bank accounts opening in the UK. (Telegraph)
“We’ll be moving on to gas and electricity companies – we’ll have smart software that optimises your spending” – (Tom Blomfeld Guardian)

Founders: Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman

 

6. OakNorth – Challenger Bank (PE)

Deal: $100 million

What they do: OakNorth bills itself as a bank for entrepreneurs, providing loans to small firms, and accepting deposits online. (Finextra). OakNorth provides financing of between £500,000 and £40 million for fast-growth businesses, as well as property developers and investors. Its clients include high street brands such as LEON and Brasserie Blanc, and developers including Galliard. (Pitchbook)

Valuation/Interesting Fact: Since the start of 2018, OakNorth has doubled its loan book from $1.1bn to $2.2bn and expects to lend a further $600m this year. Its loans have supported the development of 8,500 homes and creation of 8,000 jobs in the UK. (Insider Media Limited)

Founders: Rishi Khosla and Joel Perlman

 

7. EToro – Personal Investment Platform (VC)

Deal: $100 million

What they do: Founded in 2007, eToro has over 9 million users who can manually invest in over 1,500 instruments while those who lack time or experience can automatically copy the trades of other traders on the platform. (Reuters)

Interesting Fact: In the UK, eToro was one of the first companies to adopt mainstream advertising of cryptocurrencies in 2017, a move which cemented its position among city investors. Its move into crypto facilitated its user base expansion to 9 million as of 2018. (Bitcoinist)

Founders: Ronen Assia and David Ring

 

8. Liberis – Alternative Lending and Financing (VC)

Deal: $81 million

What they do: Liberis provides funding from £1,000 to £500,000 to small businesses based on their future credit and debit card sales. The funding is paid back via a pre-agreed percentage of the business’ digital transactions, which means it’s especially suited to seasonal businesses as repayments are made in line with their daily income. (Finextra)

Interesting Fact: Examples of small business customers given by Straathof include a local bakery that needs to invest in a new oven, a neighbourhood pub that wants to expand with a beer garden, or an online retailer that needs to incrementally restock to meet rising demand. (Tech Crunch). To date, Liberis has helped over 7,000 small businesses, advancing £210 million in funding. (Tech Crunch)

Founders: Charles Mindenhall and Paul Mindenstein

 

9. BitFury – Blockchain (VC)

Deal: $80 million

What they do: Bitfury provides computing technologies and processing capabilities for governments and corporations to deploy real-life blockchain solutions. (NewsBTC)

Interesting Fact: BitFury Group currently employs over 700 employees in 15 countries spread across North America, EMEA, and Asia. The company also operates crypto mining centers in Iceland, Canada, Georgia, and Norway, offering hash powers to some of the world’s top mining pools. (CCN) Bitfury has raised funds five times throughout the year, according to Crunchbase, coming to a total funding of $170 million. (NewsBTC)

Founders: Valery Vavilov and Valery Nebesny

 

10. Zopa – Alternative Lending and Financing (VC)

Deal: $78 million

What they do: Since pioneering the peer-to-peer lending industry globally in 2005, Zopa has helped nearly half a million people enjoy better value personal loans or grow their money, created a new asset class, and redefined the experience people have come to expect from their financial provider. (Zopa)

Founders: Giles Andrews and James Alexander, David Nicholson, Tim Parlett and Richard Duvall

2019 DEALS

 

1. OakNorth

  • Deal: $440 million:
  • What they do: Their platform uses machine learning techniques to run faster credit analysis than high street banks, while also proactively monitoring the portfolio to spot early warning signals, allowing them to intervene months before covenant breaches and defaults occur (TechWorld)
  • Valuation: The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group. (CNBC)
  • Interesting Fact: The deal brings the total primary funding the company has raised since it was founded in 2015 close to $1bn, making it one of the most well-funded financial technology companies in the world. (FT) So-called “neobanks” across Europe have raised more than $1.5bn over the past 12 months, with other high-profile groups that have raised money including Monzo, Atom Bank and Revolut. (FT)
  • Founders: Rishi Khosla and Joel Perlman

 

2. Iwoca

  • Deal: $194 million
  • What they do: Iwoca offers flexible credit to small businesses across Europe, allowing them to take advantage of opportunities previously only available to their larger peers. From placing larger stock orders to bridging cashflow gaps, finance helps power their customer’s growth. More startup than financial institution, they use technology to eliminate the cost and complexity associated with traditional business finance. That means they offer instant decisions and have no upfront fees, no lengthy forms and no long-term commitments. (Iwoca))
  • Interesting Fact: Iwoca are on track to fund 100,000 small businesses in the next five years, and their mission is to help 1 million small businesses succeed by opening up access to finance.” (Pymnts – Reiche CEO quote) The company turned its first profit last year, reports said, and has, so far, provided financing to more than 25,000 small businesses. (Pymnts)
  • Founders: Christophe Rieche and James Dear

 

3. Starling Bank

  • Deal: $97 million
  • What they do: Starling initially went to market with its current accounts and has since expanded into personal loans and SMB banking. (Business Insider) Starling says the new funding will support increased investment in the bank’s financial products in retail and SME banking as well as banking services. The bank is thought to be applying for an additional banking license in Ireland to ensure those expansion plans aren’t interrupted post-Brexit. (TechCrunch)
  • Interesting Fact: The neobank, which has 460,000 personal accounts and 30,000 small- and medium-sized business (SMB) accounts, anticipates reaching 1 million clients by year-end. (Business Insider)
  • Founder: Anne Boden

 

4. GoCardless

  • Deal: $75 million
  • What they do: With 18% of global payments now recurring, GoCardless is on a mission to help subscription businesses cut down on customer churn, replacing the likes of cards, cheques and manual bank transfers, with automated direct debit plug-ins. (Finextra)
  • Interesting Fact: GoCardless was set up in 2011 by Takeuchi and fellow entrepreneurs Tom Blomfield and Matt Robinson. Blomfield went on to create mobile bank Monzo, while Robinson left to start up digital estate agent Nested. (CNBC)
    • The company currently processes $10 billion of payments each year on behalf of 40,000 businesses worldwide. With the new funding in hand, the firm says that by spring 2019, the GoCardless network will cover 70% of the world’s recurring payments volume including North America. (Finextra)
  • Founder: Hiroki Takeuchi, Matt Robinson and Tom Blomfield