Money Squirrel has secured £185,000 in a pre-seed funding round to support its mission of transforming how businesses manage their cashflow.
According to Finextra, the platform uses Open Banking technology to automate savings for UK businesses, with a focus on helping them set aside funds for tax payments and improve overall financial management.
The £185,000 was raised from Lazaroo-Hood Group, a newly established family office. This investment will enable Money Squirrel to scale its platform and provide more businesses with tools to optimise their financial workflows.
Money Squirrel’s platform works by automatically moving allocations, such as tax payments, into separate savings accounts every time a business receives a payment. This innovative approach empowers businesses to efficiently manage their finances, including tax savings, without manual effort. The platform supports businesses in selecting the best savings accounts, ensuring their funds are optimally managed.
The funding will be used to further develop the platform’s features and expand its offerings to more UK businesses. The company plans to enhance its savings automation tools, adding further functionality to address the financial needs of small and medium-sized enterprises (SMEs) across the UK.
Money Squirrel’s mission stems from the founder’s own experience with managing business finances. “Money Squirrel was created to solve my own problem – the hours it took to move the VAT portion from every invoice into a separate, savings account,” said Andreea Daly, founder and CEO. “I created Money Squirrel to take the worry of preparing for future payments, so founders can focus on growing their businesses.”
This pre-seed funding round was led by Lazaroo-Hood Group, marking an important milestone for the company as it looks to address the widespread issue of poor cash flow, which is a leading cause of business failure. In 2023 alone, over £4.8bn in corporation tax and VAT returns were submitted late, highlighting the increasing pressure on businesses to manage their finances more effectively.
Andreea Daly’s passion for solving real-world problems has impressed investors. “Andreea’s passion for tech, innovation, and being a straight-talking founder had me captivated within 15 minutes of meeting her,” said Ross Lazaroo-Hood, co-founder of Lazaroo-Hood Group.
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