Among the latest traditional bank challengers to raise money across the pond is Tide, based in the U.K. The company, which delivers banking services across mobile conduits, has made news by grabbing $14 million in series A venture capital financing from a consortium of investors.
That consortium includes Anthemis, a noted FinTech investor, which as TechCrunch has noted, has been behind investments such as Azimo, Betterment and Creandum, among others.
The site noted that existing investor LocalGlobe, which joined the latest round, had previously joined a $2 million venture capital seed round in 2016, which helped launch the service, which includes invoicing and bookkeeping services.
The company said in an announcement that the $14 million is being used for its small business banking service and that the money will be used to expand staff at its London headquarters. Account features also will be expanded, with an eye on providing them across multiple currencies.
Tide is also debuting a new partnership with iwoca, a European lender that operates online.
In a statement alongside the funding, CEO George Bevis stated that “our investors believe there is a real opportunity to support and champion small and medium-sized companies [SMEs] in the wake of Brexit. Britain’s smaller firms have been let down by traditional banks, which often charge vulnerable companies eye-watering fees and keep them waiting weeks to open a business account.”
Bevis went on to state that “by providing our members an instant, transparent business credit facility, which for some was difficult to obtain on the high-street, we’re also making it easier for small and medium-sized companies [SMEs] to get the finance they need to grow.”
In an interview with TechCrunch, Bevis also said that, despite Brexit, the company would look to expand beyond the U.K. to help small businesses and is also targeting subsequent growth funding. The company’s average SMB deposit is less than £10,000, which TechCrunch stated has the impact of “making them less attractive to average banks, while still subjecting those smaller companies to those bigger banks’ too-high fees and cumbersome processes.”