Moneyhub | accessing Corporate Venture Capital funding in the UK

Moneyhub describe themselves as a data and payments company on a mission, and it’s no small one. Through open data, they want to help everyone get into the best financial position possible. Their goal is to change how the industry uses and views data – and, in doing so, improve the financial wellness of individuals, communities and businesses. 

Investors have flocked to Moneyhub, and in 2022 they reached their Series B round. Lloyds Banking Group, Legal & General and Phoenix Group collectively invested £50 million in the company. We spoke to CEO Samantha Seaton about her experience of receiving Corporate Venture Capital (CVC) and what this kind of investment could mean for the UK and beyond.  

Moneyhub has received different types of investment over the last couple of years. Why did you choose to go down the Corporate Venture route in 2022? 

We saw a really clear alignment between what our platform does and how our investors – particularly Lloyds, L&G and Phoenix – want to work with their customers across everything they do. From mortgages to credit cards, what we do underpins so many aspects of their offering. That was a massive draw for us, it’s a fantastic way to get our platform in the hands of lots of people.

As a business, you've always got to assess at the time who can really help you not just with the money, but also beyond the money. The money is fantastic, you need it – but how can the person behind that money help you add value faster? 

We saw a really clear alignment between what our platform does and how our investors – particularly Lloyds, L&G and Phoenix – want to work with their customers across everything they do. From mortgages to credit cards, what we do underpins so many aspects of their offering. That was a massive draw for us, it’s a fantastic way to get our platform in the hands of lots of people. And that’s what gets my entire team out of bed. You can build a great product, but if it can't get to the audience that it should be leveraged by, it's pointless. It’s so exciting for us to think that by partnering with Lloyds, L&G and Phoenix, we can genuinely step change people's lives.  

They also really understand the market, and the regulatory environment. We’re working with partners who absolutely get it – I don’t need to explain to them GDPR, or cookies.  

And one of the things that I probably underestimated – which is not to be underestimated – is their brands. They elevated our business to a level of credibility we probably couldn't have achieved as easily in any other way.

What’s special about the UK as a place to start a business and find investment? 

Britain is an incredibly innovative country. I'd like to see the UK get the accolades for the balls it sets running in the world. The UK is leading the world in terms of Open Banking and Open Finance – there is no one even close to the UK.

Being a British company with British backers – that’s not always easy to achieve, and we are in a really fortunate position.

Britain is an incredibly innovative country. I'd like to see the UK get the accolades for the balls it sets running in the world. The UK is leading the world in terms of Open Banking and Open Finance – there is no one even close to the UK. Others around the world now are following: Brazil, Mexico, Australia, Canada, the US. They will be adopting the same regulatory framework and market infrastructure that we have taken off with.

And the UK is ahead of the rest of the world in terms of putting the customer genuinely at the forefront of everything we do. The regulation and legislation here really enables this – that’s quite unique.

Looking ahead at the UK fintech startup space – what do you most hope to see in the coming years? 

There are so many great businesses in the UK that have started in the UK for all the reasons we've talked about. I get to see a lovely mix of incredibly industrious fintech startups using our platform to do amazing things. Wouldn't it be brilliant if they all had the acceleration from corporate venture funding!

Finally, what do you think makes CVC a good route for investors? 

It's the old adage, don't put all your eggs in one basket. You're not going to put all of your portfolio into fintech startups, that would be silly. But putting 10% of your portfolio into fintech startups will actually derisk the portfolio. 

Anyone that understands asset allocation, understands that the riskiest portfolio is to have it unbalanced – to not have exposure to all types of asset allocation in different forms. It's the old adage, don't put all your eggs in one basket. You're not going to put all of your portfolio into fintech startups, that would be silly. But putting 10% of your portfolio into fintech startups will actually derisk the portfolio.  

If investors only invest in proven businesses, that's like saying ‘we're only going to put our money into bonds’. You can do that, but what are the returns you're going to get? If you want to have an appropriate level of returns against the appropriate level of risks, you actually need a balanced portfolio that includes investing in fintech.