Wirex Reaches Crowdfunding Goal in Just 90 Minutes

Who needs venture capital firms anyway? Apparently not Wirex as the U.K.-based payments company easily smashed its fundraising goal using the platform Crowdcube. This morning, the startup surpassed its initial ask of £1 million ($1.28 million) in less than an hour and a half. The campaign was opened to the general public following a priority access period for those who pre-registered. Currently, the company has moved to overfunding and is closing in on £2.5 million ($3.21 million) raised.

According to the campaign site, Wirex has more than 3.1 million total registered users across 130 countries, including 220,000 active monthly users. Impressively, the platform has processed more than £3 billion ($3.85 billion) in transactions since launch. Yet, perhaps their biggest claim to fame is their Wirex Travelcard, which launched in select markets last year and has since expanded. In addition to allowing users to convert and spend money in multiple fiat and cryptocurrencies, the Travelcard also rewards customers with up to 1.5% CryptoBack on transactions. While Wirex is based in London, it also has two stateside offices located in Dallas and Atlanta in addition to other global offices in Singapore, Kyiv, Tokyo, and Toronto.

Commenting on the impact of the fundraising campaign and its early success, Wirex co-founder and CEO Pavel Matveev stated, “It’s a great milestone in achieving our original plan to raise £1 million so quickly, but it’s unsurprising given that we have already developed a pioneering platform allowing users to seamlessly buy, hold, exchange and spend multiple traditional and cryptocurrencies.” He continued, explaining, “We have decided to extend the raise further to give everyone the opportunity to invest and play a part in Wirex’s extraordinary journey, sharing our vision to take the company to the next-level and bring cryptocurrency to the mainstream.”

Of course, the campaign was also a win for the Crowdcube platform, with that company’s co-founder Luke Lang, remarking, “It’s very exciting to see Wirex achieve their crowdfunding target in such a short space of time, showing the demand that investors have for a product such as Wirex. I look forward to seeing how much they raise, as demand can often grow once a campaign is overfunding.”

Wirex is among a few other FinTech who have recent turned to equity crowdfunding. For example, Celsius Network recently raised more than $20 million via the BnktotheFuture platform. The company was originally only seeking $15 million — later upping that to $17 million (which they still exceeded).

While Wirex’s crowdfunding campaign was less ambitious than some others, the fact that it filled so quickly shows that there is not only an interest in the company and the FinTech sector but also shows that there is a viable alternative fundraising route for startups. Even as VC firms continue to pour money into the space, the success that Wirex and Celsius have seen with crowdfunding could inspire others to try this path. Surely there are pros and cons to each approach but having more options is rarely a bad thing. Therefore, we shouldn’t be surprised if more FinTech equity crowdfunding campaigns emerge going forward.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Carbon Credit API Cloverly Joins Visa's FinTech Partner Connect 

Last year, Visa introduced the FinTech Partner Connect program to the United States, with the goal of introducing institutions to vetted startups that could help them expand their product offerings. Now, the latest company to join the program is Cloverly. Founded in 2019, Cloverly is an API for carbon credits, allowing businesses and consumers to help fight climate change. As the company points out, with the Visa partnership, Visa clients...

Prosper Announces $75 Million Growth Capital Financing

A long-admired FinTech has added some new capital to its coffers and it continues to grow after more than 15 years in business. Recently, Prosper Marketplace announced that it had closed a $75 million debt financing round. This capital came from a fund managed by Neuberger Bergman and will be used to help Prosper meet the demand for its loans, credit card, investment products, and more. According to the company,...

Small Business Saturday 2022 Drives Projected $17.9 Billion in Sales

This past weekend saw the kick-off to the holiday shopping season with Black Friday followed by Small Business Saturday. Now in its 13th year, the latter is a promotion meant to raise awareness for small local businesses and encourage consumers to support them. Now, the initial figures from this year's event have arrived. According to American Express (which actually invented the retail holiday in 2010), an estimated $17.9 billion were...