Last week, IW Capital proudly announced the launch of its Series B funding round for renowned UK scale-up WeSwap – a peer-to-peer currency exchange platform at the forefront of the nation’s thriving fintech industry. As the fintech frontrunner’s lead and primary investor, IW Capital has played an integral role in supporting WeSwap’s impressive expansion since 2011, linking the company with a community of investors eager to back the next generation of high-growth businesses. Core to WeSwap’s success is its ongoing determination to uncover new innovations that will redefine not only currency exchange but the way people manage their expenses when on holiday.
WeSwap’s trailblazing approach to fintech innovation has been turning heads, both with investors and national publications. Drawn to the company’s development of a software that breaks down the costs likely to be incurred by travellers when visiting particular destinations, The Times this week published a featured on WeSwap, reaffirming the company’s leading position within the fintech space. You can read the full article here.
Over the past decade, the UK’s fintech landscape has evolved from a community of start-ups to a fully-fledged industry of scale-ups fast-transforming conventional banking practices and daily consumer activities. New research this week revealed that nearly two-thirds of UK businesses are adopting new fintech solutions to streamline internal procedures, reduce operating costs and deliver efficient services. On average, firms adopting fintech products are saving on average over £5,500 a year.
Key to the industry’s consolidated rate of rapid expansion has been the fresh injection of growth capital from non-traditional sources. Having adapted to the stringent lending conditions imposed by high street lenders in the aftermath of the global recession, scaling fintech businesses continuously look to non-traditional capital injections in the form of debt and equity finance. Tax-incentive instruments such as EIS have proven particularly popular, encouraging HNW investors to support the next generation of high-growth SMEs. Second to this, investors can also benefit from the tax-reliefs on offer through EIS. Since it was launched in 1993-94, over 26,000 individual companies have raised over £15.9 billion of funds through the EIS.
Boasting over 50 years’ collective experience in SME investment, IW Capital has offered its sophisticated network of investors the opportunity to invest in scaling businesses such as WeSwap through EIS. In addition to the encouraging properties of tax-efficient investment schemes in linking investors with companies through tax-relief, it is vital for due diligence to be carried out on all EIS-qualifying businesses to minimise the risks involved for investors. For this reason, IW Capital welcomes the Government’s plans to review and reform asset-backed EIS investments.