GoHenry, a fintech startup company behind a mobile banking and money management app, has set a new equity crowdfunding record on Crowdcube, a leading online equity crowdfunding website, by raising over £3.99 million (over $5.77 million). This has surpassed the previous biggest crowdfunding deal on Crowdcube by JustPark which raised over £3.5 million ($5.07 million) last year.
In the UK, early-stage startups are allowed to raise a maximum of €5 million (£3.9 million or $5.63 million) through equity crowdfunding. This recent raise may spur an increase on the existing cap.
Darren Westlake, co-founder and chief executive of Crowdcube said, “We are leading a charge to convince the EU to raise its limit on the amount of finance that any business can raise without a prospectus. If the €5m limit was lifted, GoHenry could have raised significantly more investment to help it expand into Europe, preparing millions of children for a cashless digital future.”
The crowdfunding round attracted 2,371 investors who shared 15.98% of the business’ equity. The initial target of the crowdfunding round was £2 million (about $2.89 million).
Louise Hill, GoHenry chief operating officer and co-founder said, “We’re delighted to give the parents that love our product a chance to be a part of our future success too. We are a business that was built by parents so it’s only natural that it continues to be owned, managed and grown by parents as well. As our economies become increasingly cashless, and as purchasing moves online, children need to be able to manage their money in a digital age.”
GoHenry offers kids an app and pre-paid cards to help them manage their pocket money. The company’s membership now exceeds 200,000, with about 10,000 new members joining every month. The raised funding will be used to further develop the product, to expand the startup’s business into Europe, in addition to further increasing the number of its UK users.
This latest equity crowdfunding round is another indicator of investors’ increased appetite for alternative and innovative financing solutions. The demand for equity in digital banks has been increasing steadily. For example, in the last few weeks, Mondo, a bank challenger startup raised £1 million ($1.44 million) in a record time of 96 seconds, while Tandem, a startup challenger bank, raised £1 million ($1.44 million) in just 15 minutes, all through crowdfunding.
GoHenry has become the 38th company to raise over £1 million ($1.44 million) on Crowdcube.