Smarterly is looking to raise more than £2 million from existing investors via a second crowdfunding campaign.
Smarterly – which offers a workplace savings and investment platform – says these funds will support its “ambitious” growth strategy with a focus on developing its sales and marketing capability over the next 12 to 18 months.
Last year the fintech company raised £1.6 million through a similar crowdfunding campaign with Seedrs. Smarterly says this money was raised from over 80 investors from within the pensions and savings industry, and a further 500 members of the general public.
The latest funding will be raised on a valuation of £16.7m for the company.
Smarterly co-founder and executive chairman Phil Hollingdale (pictured) says: “Since the previous round of funding we’ve secured many more corporate clients who promote our workplace savings platform to their employees.
“It appeals to all demographics. Millennials are attracted by the Lifetime Isa and its 25 per cent Government funded bonus, whilst high earners in the private sector direct employer-funded pension contributions into Isas due to tightening restrictions with annual and lifetime allowances on pensions.”
Other fintech companies have also successfully raised money via crowdfunding appeals. For example Nutmeg – an online wealth management company –raised over £4m on a £250m valuation.
Companies use Smarterly as part of a wider package of workplace savings to enhance the financial wellbeing of their employees, all at no cost to the employer. Employees benefit from the convenience of saving through payroll, often with a contribution boost from their employer as a complement to pensions.