Tandem turns to the crowd for £4 million fund raise

Digital banking startup Tandem is going back to the crowd in a bid to raise a further £4 million from the 2000 members of its Seedrs community.

The appeal to the bank’s investment community comes after the takeover of Harrods Bank, furnishing Tandem with a banking licence, a £375 million mortgage book and over £400 million of deposits.

In its first crowdfunding effort in May 2016, the startup reached its £1 million target within 18 minutes of going online with over-subscriptions pushing the number up to £2 million.

The new shares are being issued to Seedrs on exactly the same basis as the institutional offer for the takeover of Harrods Bank. The total target is capped at £4 million, but Tandem expects that the sum raised will be lower than this upper limit.

Ricky Knox, founder and CEO of Tandem Bank, says: “This share offer gives our Seedrs the chance to maintain their share stakes and benefit from the long-term success of the business.”

There is no further news on recent reports that former Barclays chief Bob Diamond is weighing a £10 million investment in Tandem.