Edinburgh tech startup Float has announced the completion of a £1.5 million seed funding round, led by Marchmont Ventures.
The funding boost marks the first time that the cashflow forecasting firm has accepted venture capital investment and follows the formation of a new C-Suite team last year.
Float said the investment will enable it to open a new office in Australia, capitalise on the rapid growth of the cash flow forecasting sector and perfect its product offering.
Founded by in 2010, Float helps SMEs using Xero, Quickbooks Online or FreeAgent to manage, budget and forecast their cash.
The firm provides services to thousands of businesses worldwide and, in 2019, launched its partnership programme as a value-add service for accounting firms. This helps firms improve their advisory services by giving clients more control and insight into their business, as well as increasing customer retention and revenues.
Commenting on the VC funding, Float CEO and founder Colin Hewitt said: “Cash flow management is critical to the survival and success of SMEs, and it remains the number one issue keeping business owners awake at night.
“We’ve seen a huge increase in demand with businesses looking for solutions to manage and forecast cash flow. As such, we’ve raised the funding required to grow our team and expand both locally and internationally. This demand is coming from the shift from desktop and paper-based systems to digital bookkeeping and cloud accounting solutions.”
With Float approaching profitability last year, the new funding was based on its revenue potential. The firm sees this as a means of accelerating its growth to take advantage of the opportunities within financial planning and business insights – an industry which has expanded rapidly in the last two years.
Float will open its new Australia office in Sydney in January 2020, with the company planning to make 12 new hires across its Sydney, global sales, product development and marketing teams.
Alan Martin, managing director of Marchmont Ventures, said: “We are building an ecosystem of exciting companies like Float. We are keen to work with businesses aligned with our values, who are able to grow fast but in a way that’s sustainable in the long term too.
“In that regard, Float is a perfect fit. We were struck immediately by the global market opportunity for digital accounting services, cash flow in particular, and have been really impressed by the Float product, which their users genuinely love.”