Mobile banking startup, Movivo, closes circa £200k through angel investors

Mobile banking startup, Movivo, one of our portfolio companies, just officially announced the successful close of its funding round on the UK Business Angels Association.

Movivo is a potentially life-changing app for mobile phone users in emerging countries. It provides an invaluable service for the 2.5 billion people who still don’t have bank accounts because of infrastructure issues.

They previously secured financial backing from Microsoft, a leading Silicon Valley investment fund and top British VC firm. Their investment was based on the strength of their idea and its potential to help emerging countries.

But the experience of the founders was equally important. The team comes first on my list when it comes to deal evaluation for investors – you can read the whole article here.

At Movivo, the team had experience working at Huddle.com, a collaboration platform used by the UK government, US Department of Homeland Security and large corporations including KPMG and Deloitte.)

How did we help this promising mobile startup?

As an insight into the way we work at Angel Investment Network and how we raised £188k for Movivo, I wanted to show you how we launched them to our network.

The first part of our strategy is always a carefully curated mailout. This is sent to our network of angel investors and investment funds.

This mailout is designed to build leads from potential investors. We entice them with the main impressive pieces information; they can then get back to us with questions and requests for introductions.

I have copied below a screenshot of the mailout we sent last June. This ultimately raised close to £200,000 for Movivo:

Angel Investment Network's fundraising mailout

What do you think?

What’s the outlook for mobile app startups and investors in 2017?

“There’s an app for that”, or some variant of the phrase, is now one of the most common responses to anyone raising a complaint or bemoaning a problem, however small.

Rise and fall of man

The extreme sense of entitlement coupled with the profound idleness that characterises our age has created a market for apps which manage or assist with our dry-cleaning, our sex life, our tampon subscription, our polyphasic sleep-mapping, our pets’ bowel movements…I wouldn’t be surprised if somewhere in the murky depths of the App Store there’s an app for communing with the dead – or perhaps I’ve just been watching too much Black Mirror.

The last decade has seen the rapid and unstoppable emergence of the mobile application. And it’s not just quick-on-the-uptake millennials who are enamoured with this new way of being, by now nearly everyone is a smartphone-toting app addict.

But is this set to last? And what’s the outlook for mobile app entrepreneurs and investors?

The general consensus from anecdotal reports is that mobile app companies are finding it more difficult to raise finance. This requires some unpacking. Thanks to a report from our friends at Beauhurst, who track the funds raised by thousands of seed, venture and growth-stage companies, we can see that the amount invested in mobile apps in the UK reached its highest ever level of just over £560m in 2016 (that’s up from £67m in 2011 and circa £275m in 2015).

Mobile app deal numbers and amount invested 2011-2016
Mobile app deal numbers and amount invested 2011-2016

So what’s the problem? Clearly, there are enormous (and increasing) amounts of capital still being ploughed into the app industry by investors. But hold on, there’s a nuance to this.

The crucial change which gives credence to the consensus is that the stage of the app companies raising money has changed. In 2013, 70% of app companies who raised money were seed stage, but by 2016 that number had dropped to 62% with more investors opting for the more proven venture and growth-stage companies.

So from this, we can see that for early stage app companies the prospect of raising finance has indeed become marginally harder. However, the amounts being invested into the sector are still growing at an impressive rate so for apps good enough to compete, there’s still a world of opportunity.

With thanks to Beauhurst for permission to use their data. You can read their article here