Small business banking firm receives $2 million in seed funding
A company that enables small businesses to set up a bank account has received $2 million in seed funding to help it to grow.
Tide, which is based in the UK, offers a mobile banking tool for SMEs to enable them to quickly set up an account without any monthly or annual fees.
The company has raised $2 million in seed funding from investors such as LocalGlobe and Passion Capital and is now hoping to offer additional features to SMEs later this year.
Tide charges 20p for every bank payment made and also provides SMEs with accounting and expense management solutions. The company also offers integration into accounting programs such as Xero for small businesses.
According to Founder and CEO George Bevis, Tide is different from its rival companies as it provides businesses with a full-service bank account rather than a mobile wallet.
However, reports have stated that Tide is not a bank, as accounts created using the service are provided by Barclays, and an eMoney licence is provided by PrePay Solutions, with funds being protected under the eMoney licence rather than a bank licence.
Commenting on the company, Passion Capital Partner and Tide Chairman, Eileen Burbidge, described it as “the future of small business banking services by addressing serious pain points for small business owners and entrepreneurs.
“With Tide, small business owners can get an intuitive mobile-first experience that is almost instant to set up and easily integrates with best-in-class cloud-based tools and services seamlessly,” she said.