Ed Maslaveckas and George Dunning, Founders of Bud

UK based fintech startup Bud announced today that it has raised $20 million in a Series A (Early Stage Venture) funding from multiple investors including global banks – HSBC and Goldman Sachs. Other significant investors included like 9Yards Capital (the VC firm to which George Osborne is an advisor), ANZ and Investec (INVC), Lord Fink (the former chief executive of hedge fund Man Group) as well as Innocells (the corporate venturing vehicle of Banco Sabadell, which originally participated in the seed round funding for Bud).

Ed Maslaveckas, co-Founder and CEO of Bud, explain that: “The investment proves that banks are looking seriously at how open banking can evolve beyond what regulation requires into something that genuinely puts customers first. The commitment of investors like InnoCells is a clear sign that banks appreciate this and that they view a collaborative approach as the best way of delivering on it.”

The previous seed funding round helped Bud raise $1.5 million with lead investors being INVC Fund and Banco Sabadell, following which the startup announced a partnership with HSBC Bank.

Julio Martínez, Executive Director of InnoCells, highlights that: “Open Banking represents a massive opportunity for banks across Europe to reinvent the way they serve their customers. We invested in Bud last year based on this promise and have been extremely impressed by their progress to date.” Adding that: “Bud is taking great strides forward in turning the vision of a connected financial services landscape into a reality, and we’re pleased to be continuing to support them in the next phase of their growth.

On the fintech and financial services side, Bud currently works with 85 different companies. These include fintechs from Wealthify and PensionBee to more established companies like Hiscox and AJ Bell.

The startup will use the capital raised to continue fulfilling its mission to enable users to have greater control over their lives, by simplifying their personal finances by linking their financial products and service providers with their bank. Furthermore, the investment will support Bud’s talent expansion, which currently has 62 employees, to create the largest team dedicated to open banking in the world. It will also help the company to expand into new markets in the next twelve months.

Bud, originally established in 2016, helps banks connect their apps and data to other fintech companies and financial services provider. It allows users to simplify and automate their personal finances, linking their financial products and service providers with their bank.

by Megha Bhattacharya
Market Analyst at IBS Intelligence