Pocket Money Management Start-up goHenry gets the Big Bucks through Crowdfunding

 

In our day – now there’s a phrase that instantly ages you – pocket money was stashed away in a piggy bank or a jar, building up to that big purchase you’d had your eye on, a bike or a Barbie maybe, unless it was splurged in one go on buying your own bodyweight worth of fizzy cola bottles. Today though, kids are about to get a lot savvier with their savings, thanks to a new record-breaking crowdfunding success, goHenry.

This week, goHenry scooped just shy of £4 million on Crowdcube, marking a new record raise for the platform. The funding round involved 2,372 investors for a 15.98% share of equity, with participants including 1,200 existing goHenry users. When the news broke on Startups.co.uk, it was reported that one investor contributed £250,010 into the round, helping goHenry to almost double its initial £2 million target.

The UK-based company, which aims to teach the 25 million children that receive pocket money in the UK and Europe how to manage their spending, has exceeded Crowdcube’s previous record fundraise for JustPark, which received £3.7 million back in March 2015. goHenry allows kids to create an account with a pre-paid debit card, which parents have control over. Children can even customise their own debit card (very jealous!). The company plans to use the funding to develop its core product and expand across the continent.

However, the substantial raise for goHenry has caused a bit of a stir, as currently early-stage businesses can only raise up to €5 million (£3.9 million) via equity crowdfunding, according to EU regulations. Crowdcube has stated that it is “leading a charge to convince the EU to raise its limit”, as it believes goHenry could have raised even more without the cap. The EU is said to be considering proposals to increase the current threshold to €10 million in the sector.

Increasing the cap could be a fantastic opportunity for companies like goHenry that have rallied significant investor interest online. We’ll watch this space to see how the EU decision pans out, and whether the upcoming referendum could have a bearing on the threshold.

Find out more about goHenry and its bid to create the next generation of shrewd savers, here: https://www.gohenry.co.uk/children-custom-cards/