Wombat Invest, a UK-based fintech platform, has successfully secured its initial £250,000 funding target during the final days on equity crowdfunding platform Crowdcube. The initiative was launched in early January and has attracted more than 425 investors. As previously reported, Wombat’s platform, which is currently scheduled to launch by April 2018, is being designed to allow users to invest in some of the “world’s best-known” brands for as little as £10 along with manage, save and grow their funds in themed Exchange Trade Funds (ETFs).
Wombat reported it will operate a subscription and percentage of assets based model. It also charges a 1 monthly fee to all customers, a platform fee of 0.45%, and an ETF provider fee of 0.25%. All funds from the Crowdcube round will be used to continue the fintech platform’s development. Wombat stated that a further £1-2 million pounds is to be raised within 12 months of operation to implement the second phase strategy. It also revealed a timeline of its product developments:
- Year One: Build and market the product
- Year Two: Offer new products, premium subscription, and expand into Europe
- Year Three: Aim to launch new products and further grow internationally
Wombat also stated:
“Wombat aims to run a lean operating model and leverage on new technologies. Expansion into Europe will follow. The business model projects that recurring revenue, lifetime value (LTV) and monthly active users (MAU) will be high. More products are planned with the aim to further increase revenues, along with a premium subscription service.”
Speaking about the crowdfunding success, Wombat Invest Founder and CEO, Kane Harrison, shared:
“400+ Investors, 800+ followers. This has been a great step on the Wombat journey, our current valuation is £730k. Our corporate finance advisor says that if we can get to 1,000 users we could be valued at £10mm+. Lets continue to grow our investor base over the next five days, and see how big our community can become.”
The campaign is now set to close this upcoming weekend.
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