Orca Funding Round Raises £500,000 Ahead of 2019 ISA Launch

Orca Money ISA

The Edinburgh- and Belfast-based P2P investment aggregator has secured funding ahead of the launch of its market-first ISA.

Orca has secured more than £500,000 in equity funding to help deliver its ambitious development plans in 2019.

The funding announcement, which comes ahead of its multi-platform ISA launch in early 2019, saw more than 400 investors commit to its equity fundraiser in November.

The Edinburgh- and Belfast-based fintech company also secured funding from a host of venture capitalist funds and private angel investors, with notable investors including Scotland’s ESM Investments.

ESM is an angel investment network made up of more than 80 high-net-worth individuals investing in early-growth-stage tech firms.

Future Development

Orca CEO Iain Niblock said the company was taken aback by the success of its funding round and suggested 2019 will be a “landmark year” for the firm.

“We’re delighted with the success of our recent funding round, particularly the response from the crowd who really got behind us,” he said. “2019 will be a landmark year for Orca as we roll-out new product to fulfil the needs of our investors.”

Niblock underlined the importance of its multi-platform ISA launch, which will be the first of its kind. Along with the launch of its Self-Select portfolio builder, he explained, the company is confident it can develop a reputation as the go-to platform for peer-to-peer investment.

Read more: Orca Launches Equity Crowdfunding Campaign

digital transformation 2019 banner

Orca ISA

Upon its launch in 2016, the Innovation Finance ISA (IF ISA) marked a significant moment for the growing P2P lending industry. The number of IF ISAs has grown consistently from the tax year 2016-17 to date.

More and more experienced investors in the P2P market are transferring cash ISA money into their IF ISAs to combat the effects of inflation eroding their savings.

The Orca ISA, which will be the first of its kind in the P2P market, will capitalise on this current trend.

Currently, ISA rules state that people can divide their tax-year ISA allowance of £20,000 between ISAs, for example, Cash ISAs or Stocks & Shares ISAs. However, they may only subscribe current tax-year subscriptions to a single IF ISA each year, causing difficulty in building a diversified P2P portfolio wrapped in an ISA.

Through Orca’s ISA, investors can hold multiple P2P providers in a single IF ISA, which the company says can provide a number of benefits, including:

  • Interest earnings of up to 6.5%
  • Earning returns tax-free
  • Diversified ISA money across multiple P2P providers
  • The transfer of old ISA money, and
  • The ability to invest ISA money at non-ISA P2P providers

Orca confirmed it is already building a Wait List of investors awaiting the launch of the ISA.

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