[Crowdfunding 💰] B-North

SME business bank (awaiting license) B-North is crowdfunding. Looks a bit like OakNorth?

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Hmm. They don’t even have a banking license yet. Must be very early stage and fairly competitive market.

Anyone who invested at that valuation needs their head checking

I don’t know why but my god does every private evaluation make your local takeout seem like the next Amazon

Like just think about it, 14m valuation and presumably doesn’t even lend yet since it has no license. So it has no income? It’s in an ultra competitive market (fintech) that’s competing with a market largely plagued by inertia in an industry that has a lot of operational risks

All the risk paired with the lack of any money, and they sell to people who aren’t institutional investors or funds at 14m valuation

This isn’t even a one off, it’s a common trend on both Crowdcube and Seedrs - it’s absolutely crazy and I don’t know why anyone bothers with all the risks

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They’ll reduce it when the money doesn’t appear.

Nice to know I could start a Fintech tomorrow though and be worth 15 million.

Edit: just seen they’ve got the target already… :exploding_head:

Oh man I’ve just read about their tech stack. They’re literally buying it all in. Bank in a box stuff.

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We’ve found the SME lending side of our business very slow at the moment - a lot of the companies looking for funding are on the higher end of the credit risk scale and outside our risk appetite. Will watch how they get on with interest but can’t see any compelling reason to invest.

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According to their pitch deck they have £20m of Series A commitments conditional on receiving a Banking Licence.

they just completed a £2.1m bridge round on Growthfunders and are hoping to do a Series A soon