LOAN comparison website FairMoney has launched a pre-series A funding round to raise £1m, as it looks to educate borrowers and stamp out sub-standard consumer loans.
FairMoney said the money raised will be used for “enhanced targeted customer marketing efforts, including machine intelligence, to provide customers with the very best and fairest deals for them”.
It will also be used to fund customer research into regions of the country that borrow the most, with a particular focus on unsecured loans and consolidation loans.
FairMoney is looking to raise £2.5m in total during two fundraising rounds.
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“In view of current fundraising conditions, we have decided to look to raise £1m of our planned £2.5m phases 1 and 2 raise at this time, as the current uncertainties are likely to continue for several months,” said Dr. Roger Gewolb, founder and executive chairman of FairMoney. “A raise of £1m should fully cover our capital needs until January 2020.”
FairMoney is also creating a Fair Finance Community Board (FFCB), which will lobby the government for fairness across the financial industry and among lending communities.
All FFCB board members must hold a minimum investment of £2,000 in shares of FairMoney, and they must be able to demonstrate a desire to promote financial fairness in their region of the UK.