Investors flock to charitable London fintech startup Toucan, raising £800k in funding round

Fintech startup Toucan is taking flight after exceeding its seed funding target of £500k as investors flocked to be part of a digital revolution in the charitable giving sector.

With a total of £800k from 13 investors, Toucan’s app, currently in beta phase, allows users to build a personal portfolio of up to three charities and split a single monthly donation between them.

Donors can support the same charities long-term or switch each month to develop a fully flexible and unique approach to giving.

CEO Matt Crate said: “We founded Toucan with the vision of creating a world in which giving is second nature. We have developed an intuitive app that uses modern technology to be a force for good, bridging the gap between donors and the causes that matter most to them.”

With experienced entrepreneur David King joining as chief financial officer, the business started raising capital with an initial target of £500k. By May 2021, the company had raised £800k on the power of the Toucan concept and the strength of the team behind it.

Its 13 investors demonstrate “breadth and quality” and comprise two experienced tech investors, a wealth management CEO, three entrepreneurs, two millennial retail experts,all in addition to people with “deep connections to charities”.

Chief financial officer, David King said: “The idea of enabling a digital-native generation to build and grow their altruistic identities resonated with Toucan’s initial investors. They recognised just how far the charity sector has been left behind by the digital revolution.”

The Summer 2021 Small charities responding to COVID-19 report, produced by Lloyds Bank Foundation for England and Wales, outlined several areas of concern for charities emerging from the effects of the pandemic.

Long-term funding and digital transformation were two issues in need of most urgent action, both of which have been identified by Toucan as key areas where its solution can offer immediate help.

Chief operations officer, John Barrett said: “We need to make it as easy as possible for donors to connect with charities they care about, and those who they may not yet know. We are particularly keen to give a platform to smaller charities who have such a massive impact in our communities around the UK.”