Led · Equity · May 2020

Starling is a UK-based digital bank offering personal, business, joint, children’s, euro and dollar current accounts alongside a range of lending products. It provides B2B banking and payments via a Banking-as-a-Service model built on its proprietary technology platform, and an in-app Starling Marketplace for third-party financial services. Founded in 2014 and based in London with offices in Southampton, Cardiff and Dublin, Starling claims over 2 million current accounts, including 350,000 business accounts. Its deposit base has grown from approximately £1 billion just over a year ago to more than £6 billion, and it says it holds a 6% share of the UK SME banking market. Management says the bank is on course to report its first full year in profit by the end of its next financial year-end. The company plans to use new funding to support continued rapid—and described as now profitable—growth, expand lending in the UK, pursue European expansion and anticipated M&A. Starling provides digital banking services, including checking, deposits and other consumer and business banking products delivered via mobile and online platforms. The bank reported revenue of £12 million in January, a 400% year-over-year increase, with an annualized revenue run rate of £145 million. Starling is already profitable, posting operating profits for a fourth consecutive month and net income exceeding £1.5 million per month. The company has opened over 2 million accounts, including 300,000 business accounts; gross lending has passed £2 billion and deposits stand at £5.4 billion. Starling said it will use the new funding to expand its lending operations in the U.K., move into other parts of Europe and pursue strategic acquisitions. The bank was founded in 2017 and competes with incumbent banks as well as other challengers such as Monzo, Revolut, Tide, Atom and Monese. Starling was launched in 2014 by a former Allied Irish Banks COO and is based in London, with offices in Southampton, Cardiff and Dublin. Its mobile app provides personal, business, joint and euro current accounts on Android and iOS and a marketplace giving customers in-app access to third-party financial services. The bank also offers B2B banking and payments services and is fully licensed and regulated. Starling has almost £500 million of SME lending on its balance sheet, with further commitments raising the total to nearly £1 billion. It serves more than 1.4 million current accounts, including 155,000 business accounts, and holds more than £2.4 billion in customer deposits. Since launch the company has raised significant capital to support its operations. Starling Bank is a London-based digital bank that operates personal and business current accounts, a marketplace, payment services for banks and e-money institutions, and Banking-as-a-Service. Founded in 2014 and licensed in 2016, it launched its mobile banking app in May 2017 and has opened 500,000 current accounts, including more than 30,000 SME business accounts in less than a year. The bank says it will invest €109 million of its own money and create 398 new UK jobs as part of the initiative funded by the grant. With the €115 million award from the Capability and Innovation Fund, Starling plans to make €1 billion in lending available to SME customers by the end of 2023 and to launch a web portal for SME banking later this year. Management expects to achieve a 6.7% market share within five years; the grant is intended to accelerate investment in proprietary technology and expand UK-based customer service and support.

Led · Equity · May 2020

Starling Bank is a London-based challenger bank founded in 2014 that provides consumer and business banking as a fintech. The company has accrued more than 2 million users and about 350,000 business accounts. It counts investors such as Goldman Sachs and Fidelity among its backers. Starling has been planning an initial public offering in London later this year or in early 2023. The bank recently doubled its valuation to £2.5 billion ($3.3 billion) following a Series D extension and raised an additional £130 million. Management says the new cash will be used to fund growth through acquisitions and to build a war chest for potential targets. The funding was filed at Companies House and later confirmed by Starling. Starling Bank is a U.K.-based mobile banking platform founded in 2014 by Anne Boden that offers personal, joint, children’s euro and dollar current accounts, business accounts, lending products, and Banking-as-a-Service to third parties. The bank powers its own services on a proprietary technology platform and offers customers access to third‑party financial services through the Starling Marketplace. Starling reports more than two million current accounts, including 350,000 business accounts, and a deposit base that has grown from roughly £1 billion to over £6 billion in just over a year. The company is the fastest-growing bank for SMEs in Europe and holds a 6% share of the UK SME banking market. Starling is on course to report its first full year in profit by the end of its next financial year-end and describes its growth as now profitable. Management plans to use new funding to support continued rapid growth, expand lending in the UK, pursue European expansion, and consider anticipated M&A. Starling Bank is a London-based digital challenger bank that offers personal, business, joint, euro and dollar current accounts, lending products, a Banking-as-a-Service platform, and an in-app marketplace for third-party financial services. Founded in 2014 by Anne Boden, the company powers its own banking services on a proprietary technology platform and provides B2B banking and payments through that platform. Since launching in 2017 it has opened more than two million accounts, including over 300,000 small business accounts, with a new customer joining every 39 seconds. Operationally the bank has recorded four consecutive months of operating profit, generated £12M in revenue in January 2021, and reports net income now exceeding £1.5M per month; deposits top £5.4B and gross lending exceeds £2B. The newly raised capital will be invested to support targeted expansion of UK lending, to launch Starling in Europe, and for anticipated merger & acquisition activity. Starling is fully licensed and regulated, headquartered in London with offices in Southampton, Cardiff and Dublin, and all accounts are protected up to £85,000 by the Financial Services Compensation Scheme. Starling Bank is a U.K. challenger bank that provides personal and business banking accounts and services. The bank has 1.4 million accounts, including 155,000 business accounts, holds more than £2.4 billion in deposits after its deposit base doubled in six months, and reports almost £500 million of SME lending on its balance sheet. Since launching SME accounts in March 2018 and securing £100 million in state aid via the Capability and Innovation Fund (CIF), business banking has become a strategic focus. Starling claims a 2.6% share of the U.K. SME banking market. Starling says it will use the new funding to continue investing in growth and to provide support to small business customers affected by the coronavirus; it has collaborated with the U.K. government on schemes such as the £300 million under the government-backed CBILS and via its own CBIL and Bounce Back Loan Schemes. Since its 2014 launch the bank has raised a total of £363 million and was founded by Anne Boden. Starling Bank is a U.K.-based challenger bank founded by banking veteran Anne Boden. It offers a mobile banking app that launched in May 2017. Customers have opened 1.25 million consumer and business accounts since the app's launch. The company recently raised another £60 million from existing investors. The investors named in the article are Merian Global Investors and Harry McPike’s JTC. The article does not disclose the specific financial instrument used in the round.