A Lawrence Stephens Partner has helped break a crowdfunding record in acting for UK savings app Chip.
Partner Bradley Lee helped the UK start-up complete a record-breaking funding round on Crowdcube in December 2018, raising more than £4m and attracting an unprecedented 7,000 investors on the equity crowdfunding site.
Chip is a savings app which uses AI algorithms to continuously calculate how much individual users can afford to save, and then automatically transfers that money every few days into a savings account which pays up to 5% interest.
The raise on Crowdcube was the third largest the site has ever seen and attracted the largest number of investors to date.
Bradley Lee has acted for Chip since its incorporation in 2016, including acting for them in their first Crowdcube raise for £1.1 million in February 2018. On both these occasions he prepared the crucial investment documentation, liaising with multiple stakeholders including Crowdcube, existing shareholders and Chip itself.
The funds from this latest raise will be used by Chip to launch new products including ‘Chip X’, a community lending service slated for launch early this year.
Simon Rabin, Chip’s CEO and founder, commented:
“In December Chip raised over £4m from 7,000 investors, placing the raise as the biggest crowdfund in UK history. Bradley Lee and his team at Lawrence Stephens were integral to the execution of the crowdfunding campaign. They allowed the raise to be as smooth as possible letting us focus on communicating the investment proposition to prospective investors. No challenge was too big or too small for Bradley and that is the attitude that is central to a successful crowdfunding campaign.”
Bradley Lee, Partner at Lawrence Stephens commented:
“I’m very pleased to see Chip achieve this fantastic result and it’s been a pleasure working with them since their incorporation and watching them go from strength to strength. With such a high-profile raise it’s crucial that the legal documentation is faultless to avoid upset further down the line and ensure all stakeholders are happy with the result. There’s nothing more satisfying than watching a venture grow in success and profitability and being on hand to guide them through the process, helping them navigate unique challenges and opportunities which come their way. I look forward to helping Chip break more records in the future!”
Bradley’s role in this crowdfunding record adds to Lawrence Stephens’ long, proven history of adding value to companies of all sizes from fast-growing start-ups to partnerships, SMEs and market-leading corporations. The Company & Commercial team takes a proactive and business-led approach to all their work, meaning clients rely on the team as much for their commercial acumen as for their legal advice. Bradley has recently acted for a serial entrepreneur, advising them in relation to various investments including technology start-up companies and property joint ventures, and has also recently acted for the sellers of an owner-managed digital marketing company to a PLC and for the purchasers of a well-known motor vehicle accident repair centre business.