This week, our deal of the last 7 days goes to Camden-based Tandem.
What do they do?
“A bank that lives to solve your problems, with a techie brain and a human heart”, is how Tandem describes itself in its own words. The online retail bank was founded in 2013, and has since secured six rounds of equity finance.
Having been granted a licence by the Bank of England, Tandem is taking a ‘crowd’-type approach to its infrastructure, offering stock to individuals via its a co-founder program. The move is not only a step towards democratising banking, but is also a means to bypass strict banking rules.
“With banks you have a two-year process applying for an application, and if you even so much as tickle a customer in that time, they will slap you around the face and say you can’t have your banking licence”, says founder Ricky Knox. “So we decided, let’s bring in customers a different way”.
1) Ricky Knox
2) Chris Rushe
How much did they raise?
Tandem secured an undisclosed equity investment, which our researchers verified to be £9.98m. The company achieved a £56m valuation, after parting with 17.8% equity.
e.ventures (Europe), Route 66 Ventures, Omidyar Network
Which companies are they up against?
Durham-based Atom Bank has hogged challenger bank headlines in the past. Last year, it secured a whopping £82m equity investment led by BBVA, with contribution from Woodford Investment Management, and Polar Capital.
Earlier this year, the digital only bank – which is currently valued at over £68m – acquired Grasp, a UK-based provider of ‘bespoke digital service for the banking industry’.
Aldermore IPO’d in December 2014, raising £226m on the London Stock Exchange. Previously to this, though, the SME-focussed bank secured £80m in equity investment from investors including AnaCap, Lansdowne Partners, and Toscafund.