How this fintech raised £70m without VC backing

2026-02-10 · Source: Sifted · Field: Finance & Economics — FinTech & Digital Financial Services, Capital Markets & Investment Management, Personal Finance & Wealth Planning · Depth: Intermediate, medium

Summary

Fintech startup Chip successfully raised £70 million primarily from retail investors, eschewing traditional venture capital (VC) backing. Founded in 2017 by Simon Rabin and Alex Latham, Chip developed a wealth management app that now serves 400,000 customers. The company's fundraising strategy involved multiple crowdfunding rounds, including a recent £3 million raise via Crowdcube 3.0, which attracted 10,000 investors. Chip's approach emphasizes direct engagement with its customer base, allowing them to become shareholders and fostering a strong community. This model contrasts with typical VC funding, which often involves significant equity dilution and external control. Chip aims to reach profitability by 2026 and expand its offerings, including a new investment platform.

Key takeaway

For entrepreneurs seeking to maintain greater control and minimize equity dilution, consider a retail investor-focused fundraising strategy. Your company can build a loyal community by allowing customers to become shareholders, potentially securing significant capital without traditional VC backing. This approach fosters strong alignment between your user base and your financial growth, but requires robust communication and community management.

Key insights

Retail investor crowdfunding can be a viable alternative to traditional VC funding for fintechs.

Principles

• Customer-investor alignment builds strong community.
• Crowdfunding can reduce equity dilution.
• Direct engagement fosters loyalty and investment.

Method

Chip utilized multiple crowdfunding rounds, including Crowdcube, to raise capital directly from its customer base and the broader public, enabling it to bypass traditional VC funding.

In practice

• Explore crowdfunding platforms for capital raises.
• Engage customers as potential investors.
• Prioritize community building in fundraising.

Topics

• Fintech
• Crowdfunding
• Retail Investment
• Wealth Management
• Startup Funding

Best for: Entrepreneur, Investor, Business Analyst

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.