Satago secures US$1 million second round funding to expand automated credit control business
London - May 15th, 2014 - UK based start-up Satago today announced it has secured US$1million (£600,000) in second round funding from private investors. Satago will use the funds raised to further develop its online platform that automates credit control, enabling small businesses and freelancers to get paid on time. Most of the investment round came via AngelList, an influential US website that connects Angel investors to startups.
The substantial fundraising demonstrates the confidence investors have in Satago's approach to tackling the problems caused by late payment in the small business sector. SMEs in the UK are paid 41 days late on average, creating enormous cash flow issues that the EU estimates causes up to 25% of company bankruptcies.
Satago had previously raised $48,500 (£30,000) from 61 investors in 15 days through the crowdfunding platform Seedrs, which enabled the company to develop and launch its platform in 2013. Since then, Satago's user numbers have grown rapidly and many businesses are actively sharing data about late-paying business customers.
Steven Renwick, founder and CEO of Satago said:
We are thrilled to have attracted so much interest from investors in our company and look forward to being able to rapidly scale our operations in order to help more small businesses and freelancers get paid on time. Late payments cause untold damage to UK SMEs and threaten to slow down the economic recovery. We're determined to use our growth as an opportunity to redress the payment imbalance that currently exists between big businesses and their smaller suppliers.
Satago has shared its plans with the Department for Business, Innovation and Skills and other Government departments as well as relevant trade bodies such as the Federation of Small Businesses.
Peter Thomson, Chief Marketing Officer at Seedrs said:
Satago was one of the first UK startups to raise their initial investment through our platform and we are delighted that Satago continues to go from strength to strength. Its success underlines the way that equity crowdfunding can fit in seamlessly with large angel and venture capital investment.
Georgia Hanias | Patrick Evans | Amrit Nijjer
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