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Starting a self-employed business is easier than ever, but the finance tools available haven’t improved for decades. Coconut automates bookkeeping & tax for sole traders, a market of 3.5m in the UK. With 8k paying customers and 174% revenue growth in 2020, Coconut is on a mission to transform sole trader finances.

  • 174% revenue growth between 2019 and 2020
  • 8,000 paying customers, a 6x increase since December with new subscription model
  • 2,800 accountants registered on the Coconut Accountant Portal
  • Fully authorised by the FCA for Open Banking aggregation as an AISP

Idea

In 24 months 3.5m sole traders will be required to complete 4 tax submissions a year instead of 1, because of HMRC’s Making Tax Digital (MTD). What’s more, they will be required to use a digital product like Coconut to do this.

Founders Sam & Adam became self-employed after selling their first fintech business. Despite being PwC trained accountants, they found managing taxes a growing burden.

Coconut is on a mission to become the leading sole trader finance and MTD product in the UK. They are raising a Pre-Series A to cement their lead in this space.

The pandemic focussed the team on meaningful core metrics. Total revenue grew by 174% in 2020 (YE 2020 revenue: £679k, EBITDA: -£2,335k). Having launched a new pricing model at the end of 2020, they converted 75% of active customers to paying by March 2021, growth of 6x since December. With 2,800 accountants signed up, Coconut is a favourite with accountants too.

An early pioneer in Open Banking, Coconut connects with over 25 banks, giving automatic tax insights using banking data. With invoicing, receipt storage, tax and performance dashboard built-in, Coconut equips customers to easily manage their business and tax in one place.

With 100m+ self-employed businesses in Europe and North America alone, Coconut is targeting an exciting global opportunity.

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Risk warning

Investments of this nature carry risks to your capital, including illiquidity, lack of dividends and dilution. Balance risk with a diversified portfolio. Read more. Approved as a financial promotion by Crowdcube Capital Limited, which is authorised and regulated by the Financial Conduct Authority.

Investment opportunities are not offers to the public and investors must be eligible Crowdcube members. Further restrictions and Crowdcube's limitation of liability are set out in the Investor Terms and Conditions. Please seek independent advice as required as Crowdcube does not give investment or tax advice.

Coconut has been given advance assurance by HMRC that the proposed share issue is likely to qualify for Enterprise Investment Scheme (EIS) tax relief.

Tax relief is available to individuals only, with income tax relief currently set at 30 per cent of the cost of the shares for the tax year in which the investment was made. The tax reliefs can also reduce your Capital Gains Tax bill. Read More.

Availability of tax relief depends on your individual and the company’s ongoing circumstances and applicable law.