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Startup bank Tandem took just 15 minutes to raise £1 million in its first crowdfunding round

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Bart King
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Small investors were muscled out by bigger players for app-only bank Tandem's first crowdfunding round on Thursday, with 85% of the round filled by just five investors.Tandem smashed its £1 million fundraising target in just 15 minutes on Friday, raising £850,337 in just 10 seconds.Hundreds more investors entered what's known as "overfund", pledging money in case Tandem decided to take on more money.Tandem's pitch page reveals that just five investors contributed the vast majority of investment in the round — £845,014 — with four "anonymous" big ticket investments of £99,000 or more that look out of step with typical "crowd" investments.

One user called "Manuel di Toma" wrote on Tandem's Seedrs page: This process is really disappointing; I had similar issues that prevented me to bid.I hope that Tandem will consider extending the offered equity to make everyone happy, not only institutional investors that can afford to invest hundreds of thousands of pounds but also smaller investors like me.Tandem has now done exactly that, agreeing to extend its crowdfunding campaign to meet all the demand from investors up to the European Union cap of €5 million.

@mialomo @tandembank just checked my statement, I have 3x pending charges, but only 1 Investment, shame not converse pic.twitter.com/MyJtpFaCZF — Tom O'Neill @tomoneiller May 19, 2016 @tomoneiller @tandembank OMG I just checked my card 5X pending.

The company has since offered to send its pitch deck to would-be investors who request it.Tandem, which has yet to launch any products, has to date raised £22 million from investors including eBay cofounder Pierre Omidyar.

The startup is valued at £65 million and was the second app-only bank to get a banking licence last year.Tandem is one of a number of app-only banks, sometimes called neobanks, set to launch in the UK this year.

Others include Mondo, Atom, and Starling.

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