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Chip hits £3 million in first day on Crowdcube

Chip hits £3 million in first day on Crowdcube

Money management app Chip has had a busy 24 hours, stockpiling cash in its latest crowd funding round.

Setting a target to raise £1 million on Crowdcube, Chip has roared ahead, with just over £3 million raised from 2729 investors, with shares selling at a 30% discount.

Chip has avoided the necessity of agreeing a valuation by issuing investors with convertible shares, which will be converted into stock at a later date.

In October last year, Chip closed the biggest ever equity crowdfund on Crowdcube, raising £11.5 million from 12,954 investors. The current campaign still has eight days to run, with the firm hoping to surpass the 2021 toal.

Chip currently counts 500k+ savers across the UK with £1bn+ saved through the platform.

Looking ahead, Chip is ready to launch an FSCS-protected branded instant access savings account, with a % bonus that will closely follow the Bank of England base rate. The firm is also taking on premium bonds with the Chip Prize Savings Account and is building an alternative assets platform that will enable users to buy fractional shares in luxury items.

Like other fintechs, the pitch is heavily geared towards a pledge to build for profitability: "After a year of record growth, gaining just under 100k new users in Q1 alone, hitting £1+ billion all-time deposits for users, Chip’s moving into the next phase; focussing on revenue growth and building our path to profitability."

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