London savings platform hits £2.6m fundraising target with plans for international expansion

London based online savings platform Flagstone 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 January 19 2022 and was full within one month. The offer was extended into an over-allotment and Wealth Club’s private investors invested £2.6m into the growing business as part of a larger investment round. The fundraising closed on February 25.

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 simplified, secure online platform, with access to hundreds of deposit accounts from over 50 banks through a single application, enabling them to earn 5 to 10 times more interest, and reduce their risk under the FSCS scheme, which protects a maximum of £85k of savings with any one provider.

Simon Merchant, CEO of Flagstone said, “We have enjoyed working with the highly professional Wealth Club team on this important fundraising. Their extensive network of high net worth and experienced investors means that we were able to present the opportunity to a large number of potential investors and clients.

“This funding round enables us to continue with the scale up of our business in the UK and internationally.”

Alex Davies, CEO and founder of Wealth Club, added: “An estimated two-thirds of all deposits held by individual savers and a further £500bn of cash deposits held by SME businesses and charities is sitting static within the big high street banks earning very little interest.

“What most people don’t realise is that with inflation running at 5.5 per cent, the value of their savings is silently being eroded. With interest rates creeping back up at the same time, this only presents another huge opportunity for Flagstone to grow its business as all focus returns to interest rates on savings.”