The impact banking app that turns your everyday spending into a force for good
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.novus.world/ |
| Sectors | Finance & Payments Digital B2C |
| Company number | 12558352 |
| Incorporation date | 16 Apr 2020 |
Business highlights
- Live app with 200+ Beta users and 25,000+ people on the waitlist
- One of the few fintechs to build their own core banking engine
- UK FCA registered and Certified B Corporation™
- 100+ ethical brand partners and 10 NGOs signed pre launch
Key features
Learn more about convertible campaigns.
Idea
Introduction
Meet Novus, the B Corp™ impact banking app that gives you the power to make a positive impact – each and every time you use your card.
According to a 2021 study by WWF and Greenpeace, if the UK’s biggest banks and investors were a country, they would rank 9th in the world for carbon emissions. And while there are more than 29 million people in the UK looking to adopt a more sustainable lifestyle, making a difference can feel challenging, unrewarding and insufficient.
We’re on a mission to build the super app for the conscious consumer - starting with making positive impact as easy as making a payment.
Here’s how it works:
DIGITAL BANKING – intuitive digital banking features that make it easy to manage your money and create positive impact.
IMPACT GENERATION – we share part of our revenue with NGOs, you choose which causes you’d like your everyday spending to help support.
SUSTAINABLE MARKETPLACE – discover 100+ brands working to build a better world, and have your ethical spending rewarded with cashbacks.
CARBON TRACKING & OFFSETTING – connect directly with projects that can help you lead carbon neutral lifestyle.
Substantial accomplishments to date
Led by an inter/national maths olympian and former tech investor, Hris Nedyalkov, we are now a team of over 25 people with previous experience within high-growth fintechs including Starling Bank, Monzo, Holvi, Bunq, Remitly, Moneybox and Ripple amongst others.
Key achievements in the past 6 months:
☑️ Raised £1.1M in an oversubscribed pre-seed round from high value-add institutional and angel investors
☑️ Partnered with mission-aligned organisations such as Visa, Railsbank, Marqeta and others, which allows us to pass on even more impact to our NGO partners
☑️ Launched live app in the UK banking system with 200+ Beta users
☑️ Rapid growth of our waitlist with over 25,000 people on the waitlist
☑️ Authorised by the UK FCA with an Electronic Money & Open Banking Agency license
☑️ Based on market research, one of very few fintechs to build our own proprietary banking engine
☑️ Signed up more than 100 ethical and sustainable brand partners as part of our marketplace
☑️ Features in mainstream and fintech press including: The Telegraph, The Sunday Times, Finextra, FintechFutures, Startup Magazine, The Fintech Times, Business Cloud
☑️ Ready to publicly launch to our waitlist and beyond as early as the end of this year
☑️ Became the first UK digital only banking app to become a Certified B Corporation™
Monetisation strategy
We are developing an all-encompassing solution for a high value and rapidly growing segment of the market (i.e. the conscious consumer), with multiple revenue streams from the onset:
1️⃣ MONTHLY SUBSCRIPTION FEE (starting at £1.0 per month with free trial period) - Novus plans to charge a fair monthly subscription for our ecosystem of sustainable financial and lifestyle services.
2️⃣ BRAND COMMISSION FEE (2.0% - 20.0% per transaction) - we have 100+ ethical & sustainable merchants who will pay a commission to offer their products to the Novus community of mission-aligned people. We share a part of this fee automatically with the impact cause of your choice within the app.
3️⃣ INTERCHANGE FEE (0.2% per transaction) - this is the classic debit card fee we receive whenever a customer makes a purchase. We share a part of this fee automatically with the impact cause of your choice within the app.
4️⃣ CARBON OFFSETTING FEE (5.0% - 10.0% per carbon offset unit) - Novus is making it easy for people to connect with exciting projects that allow them to offset their carbon footprint and is taking a margin on this feature.
We also plan to develop the following revenue streams in the future:
☑️ Impact investments
☑️ Ethical Business banking
☑️ Premium account packages
☑️ Lifestyle-aligned insurance
☑️ Green lending
☑️ Ethical savings
Use of proceeds
In preparation for our seed round (target goal of £5mn+) in Q2 2021, investment from our crowdfunding convertible round will be used predominantly in three key areas:
☑️ TALENT (50%) - continuing to strengthen our highly skilled team across customer experience, compliance, payments and tech functions for our next phase of growth
☑️ PRODUCT & TECH (30%) - continued releases of new products and features on our roadmap and coverage of operational product and tech costs
☑️ BRAND AWARENESS (20%) - after spending time testing messaging, creatives and channels we’ll be scaling our existing marketing efforts to accelerate our brand awareness
Investor Perks
We will generate the impact on your behalf through our network of highly efficient and transparent NGO partners - which will be reflected in your Novus app when you sign in with the same email used for Seedrs.
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Key Information
Convertible key terms
This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".
The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.
• Discount – conversion at a 20% discount to the valuation set by a Trigger Event.
• Valuation cap of £15,000,000
• Conversion is triggered by ("Trigger Events"):
o An Equity Fundraise – defined as the Company raising investment capital of at least £750,000 from one transaction or a series of transactions, in exchange for the company issuing of ordinary shares;
o A Change of Control of the company (transfer of more than 50% of the share capital); or
o An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• Longstop Date is 6 months from the date of the advance subscription agreement.
• If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is the lower of:
o the lowest price of any shares issued after the date of this Agreement; and
o a price per share of £1.827964, based on a company valuation of £9,000,000
• The convertible would also convert to equity at the Default Share Price in the event of winding up or liquidation of the company.
Outstanding debt
Please note company has outstanding director loans totalling £184,537. These are funds the directors injected in the company to run operations during the bootstrapping phase. These are loans with zero interest, no maturity date and no immediate plans for repayment.
Please note funds raised as part of this round will not be used to repay these loans.
Lead Investor Anti-Dilution Rights
Please note that the current lead investors in the Company have full ratchet anti-dilution protection up until the point the Company raises a £1million round. In the event the Company issues any shares at a price below £1.279576 (the lead investors’ original subscription price), then the investors will be issued additional shares so that their shareholding is equivalent to the shares they would have received had they originally invested at the lower share price.
Seedrs investors are not being offered this right as they will benefit from EIS relief.
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