Total amount raised
$1 Billions
Latest funding date
6/1/2021
Location
OakNorth has successfully raised significant funding across multiple rounds, attracting a diverse group of investors. The bank's innovative approach to business and personal banking has garnered attention and support from notable financial backers.
Keep reading to explore the intricacies of OakNorth's fundraising journey and the investors backing this dynamic platform.
What Is OakNorth?
OakNorth, founded in 2015 by Joel Perlman and Rishi Khosla, is a digital bank headquartered in Manchester, United Kingdom. The bank specializes in providing bespoke credit and banking services to businesses across the UK and the US.
With a focus on serving small-to-medium sized enterprises (SMEs), OakNorth offers tailored debt finance solutions to various sectors, including property development, care homes, and hospitality. The bank's innovative approach leverages data-driven technology to deliver fast and flexible financial services.
Currently, OakNorth employs between 251 and 500 people, reflecting its significant growth and impact in the financial sector. The bank continues to support ambitious businesses and contribute to community development through its advanced banking solutions.
How Much Funding Has OakNorth Raised?
- Seed Round
- Amount Raised: £23M
- Date: January 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the bank and develop its initial product offerings.
- Series A
- Amount Raised: £66M
- Date: November 2015
- Lead Investors: Sammaan Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand its lending capabilities and grow its customer base.
- Series B
- Amount Raised: £27.5M
- Date: January 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance its technology platform and scale operations.
- Series B
- Amount Raised: £161M
- Date: October 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid growth and increase loan issuance.
- Series B
- Amount Raised: £90M
- Date: November 2017
- Lead Investors: GIC
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand its lending portfolio and market reach.
- Non-Equity Assistance
- Amount Raised: Not publicly disclosed
- Date: March 2018
- Lead Investors: Future Fifty
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To gain strategic support and mentorship.
- Series B
- Amount Raised: $100M
- Date: September 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale its operations and enhance its technology platform.
- Private Equity Round
- Amount Raised: $440M
- Date: February 2019
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To double down on existing operations and expand to the U.S. market.
- Non-Equity Assistance
- Amount Raised: Not publicly disclosed
- Date: June 2021
- Lead Investors: The FIS FinTech Accelerator in Partnership with The Venture Center
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To gain strategic support and mentorship.
Total Amount Raised: $848M. Current Valuation: Not publicly disclosed.
Key Investors
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is a large investment fund managed by SoftBank Group, known for making significant investments in technology companies worldwide. The fund aims to support transformative companies that leverage big data, artificial intelligence, and machine learning.
- Investment Focus Areas: Technology, AI, big data.
- Notable Investments: Uber, WeWork, ByteDance.
- Clermont Group
- Details: Clermont Group is a private investment group that invests in various sectors, including healthcare, financial services, and aerospace. The group is known for its strategic investments and long-term growth focus.
- Investment Focus Areas: Healthcare, financial services, aerospace.
- Notable Investments: SoFi, SB Energy, Straits Trading Company.
- GIC
- Details: GIC is a sovereign wealth fund established by the Government of Singapore to manage its foreign reserves. It is one of the world's largest global investors, with a diversified portfolio across various asset classes.
- Investment Focus Areas: Real estate, private equity, infrastructure.
- Notable Investments: Alibaba, Blackstone, UBS.
- Sammaan Capital
- Details: Sammaan Capital is an investment firm that focuses on supporting innovative and high-growth companies. The firm aims to provide strategic capital to businesses that have the potential to disrupt their industries.
- Investment Focus Areas: Fintech, healthcare, technology.
- Notable Investments: Not publicly disclosed.
- Future Fifty
- Details: Future Fifty is a UK government-backed program that supports high-growth tech companies. It provides access to expert advice, networking opportunities, and strategic support to help companies scale.
- Investment Focus Areas: Technology, fintech, digital services.
- Notable Investments: Not publicly disclosed.
What's Next for OakNorth?
OakNorth's future looks promising as it eyes expansion into the U.S. market through strategic partnerships with American banks. This move could significantly increase its market reach and revenue streams. Additionally, licensing its Analytical Intelligence platform to other financial institutions globally presents a substantial growth opportunity, leveraging its proven technology to enhance risk assessment and portfolio monitoring.
Given the substantial $440 million investment from SoftBank and Clermont, OakNorth is well-positioned for future fundraising rounds to support its ambitious expansion plans. However, the company may face challenges such as competition from other fintech firms and navigating regulatory landscapes in new markets. Maintaining its impeccable track record of no defaults or late payments will be crucial as it scales operations.
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