Flagstone, the UK’s biggest savings platform by number of clients, has reached its target fundraising through the Enterprise Investment Scheme (EIS). The online savings provider engaged Wealth Club, the UK’s largest broker of alternative investments to lead the EIS funding round.
The EIS launched on 19th January 2022 and was full within one month. The offer was extended into an overallotment and Wealth Club’s private investors invested £2.6 million into the growing business as part of a larger investment round. The fundraising closed on 25th February.
The UK government established the enterprise investment scheme in 1992, as an initiative aimed at encouraging private investors to support UK innovation, stimulate the growth of the economy and build employment opportunities. In return the EIS provides 30% tax relief for investors who are willing to invest in early-stage, high potential and higher-risk companies.
Launched in 2013 as a platform for high-net-worth savers, Flagstone aims to address the inertia that prevents savers from shopping around for better interest rates. It provides savers with a simple to use, secure online platform, with access to hundreds of deposit accounts from over 50 banks through a single application, empowering them to earn 5 to 10 times more interest, and reduce their risk under the FSCS scheme, which protects a maximum of £85,000 of savings with any one provider.
Flagstone’s vision is to create the UK’s biggest savings platform by assets. The money raised from the fundraise will be used to continue scaling up Flagstone within the UK, including enabling the further reduction of its entry threshold of £50,000 for new personal customers, adding other investment products to its service offering and also building on its ambitious plans to grow the business internationally.