Just a couple months after GoHenry captured nearly £4 million through its Crowdcube initiative, CEO of the digital bank solution, Alex Zivoder, shared details about the epic campaign and the company’s future.
As previously reported, goHenry is an application and pre-paid debit card that is designed for kids from 8 to 18 to help them learn to manage their finances. The company received recognition for being named as one of the world’s Leading 100 Fintech Innovators by KMPG and H2 Ventures. Today the company has over 200,000 users and states they are adding more than 10,000 users every month.
While revealing why he and his team decided to use the crowdfunding method, Zivoder stated:
“After a lot of diligence we believed crowdfunding offered a viable route to raise a meaningful amount of capital. As a company founded by parents, we were really attracted to the idea that we could be funded by parents too; allowing our customers to be part-owners in our company and support our journey felt like the right thing to do for our company. We have a large community of families who use the product, love it and trust us and this put us in a great position for crowdfunding.”
He then shared:
“For this round using our existing investors, leveraging our customers and the crowd’s community made a lot of sense for us and Crowdcube provided a platform to support that. However, we seek to continue to finance the company later next year. At this stage it’s certainly possible an institution will come onboard. Either way the VC or no VC route is a good internal debate for a start-up to have – overall it’s great companies have choice as there are increasingly more ways for a company to raise funds to facilitate growth. But whatever road you go down there are challenges and it’s hard work.”
Noting why GoHenry picked Crowdcube for the campaign, Alex noted that the equity crowdfunding platform stood out as a “leader in the market” because they completed more raises over £1m than any other platform in the UK. He went on to add that the funds will be used to continue GoHenry’s growth in the UK along with beginning the process of internationalizing the company, move into European markets, and continue to invest in the products.
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