Fintonic and Zank create the first European crowdfunding exit

  • Tuesday 13th March 2018

Spanish Crowdcube funded business, Zank has reached an agreement with personal finance management platform Fintonic, which will become a shareholder in the business. It’s good new for Zank’s 252 Crowdcube investors, who will receive an undisclosed positive return on their investment.

Although the agreement terms are confidential, the deal, which is one of the first corporate acquisitions among fintech companies in Spain, will enable Zank to accelerate its growth as a consumer lending marketplace.

Zank’s Growth Path

Zank is a peer to peer lending platform founded by Leonardo Ramírez, Luis Reig and Oriol Chimenos in November 2013 with the aim of connecting people who are looking for a loan at a fair interest with people who want to get greater profitability for their savings.

In 2014, Zank participated in the Plug and Play acceleration program and made its first capital raise with private investors. In 2015, it carried out a second capital raise – its first through Crowdcube – which saw the company raise €235,000 from 69 investors who acquired a 16% stake in the company. This injection of funds enabled Zank to invest in the development of its platform. In 2017, Zank returned to Crowdcube for its third and final  capital raise with private investors. The company raised €490,000 from 183 investors in exchange for 8% of the company’s equity.

Since its launch, Zank has intermediated over 8 million euros and it registered a growth of 250% in 2017. Fintonic investment into the company marks a milestone in its history not only for Zank, but also for the Spanish fintech market.

Fintonic is a personal finance management and optimisation platform with more than 760,000 bank accounts. The company was founded in 2012 and has the backing of Ideon, Financial Solutions, Inception Capital, Onza Capital, Atresmedia, ING Group, PSN and other private partners.

A Success Story for the European Equity Crowdfunding Market

The exit for investors is great news not only for shareholders and the company, but also for European equity crowdfunding platforms such as Crowdcube.

Zank’s investors profile:

  • 252 investors in two capital raises through Crowdcube

  • Investors from the first raise followed on and committed 15% of the second raise

  • The largest investment was €50,000

  • The average investment was €2,879

  • 172 of the 252 investors have invested in other companies in Crowdcube

  • The average portfolio is 7 companies

  • The largest portfolio is 103 companies

Ana B., Zank investor: "This was my first investment in a startup through Crowdcube and I was advised of the high risk of this type of investment, so I had to choose carefully and not risk too much money. In the end, the profitability that the investment has given me in just 2 years has been amazing – I wish I had invested more!". She adds, "Also, the exit process has been very fast and easy; they even paid for notary expenses”.

A New Exit for Our Crowd

Despite the relative infancy of the crowdfunding industry, Crowdcube has already delivered financial returns to investors; with a number of exits from businesses that have funded on Crowdcube:

  • E-Car Club, the UK’s first entirely electric car sharing club for businesses and communities, raised £100,000 from 63 investors on Crowdcube in 2013. In what was the first full equity crowdfunded exit, E-Car Club was acquired to Europcar, Europe’s leading car rental and mobility company in 2015. The sale delivered positive returns for investors.

  • Camden Town Brewery, one of London’s biggest breweries, raised £2.75m on Crowdcube in 2015, following investment from over 2,100 investors. Just eight months later the company was acquired by AB InBev, the world’s biggest drinks company, delivering investors a multiple return on their investment. The sale delivered positive returns for investors.

  • Disruptive global DIY fashion brand Wool and the Gang, which raised funding in 2015, was acquired by BlueGem Capital Partners who have also invested in the likes of Liberty London and Mamas & Papas. The sale in 2016 delivered positive returns for investors.

  • BrewDog, which raised over £800k via an equity raise on Crowdcube, offered shareholders (including existing Equity Punk investors) the opportunity to sell 15% (max 40 shares) in its latest funding round.

  • Celixir (formerly Sole Trader) offered its backers an opportunity to realise a proportion of their initial investment with a share buy-back, which gave investors a 2.7x return on their original investment in 2014.

  • Mettrr Technologies became the first company to provide financial returns for its crowd investors through a secondary share sale on Crowdcube in April 2017. Investors, who backed the tech startup in 2012 on Crowdcube, received a 9x return on their original investment.

If you are interested in exploring our current investment opportunities, you can view the full list here.