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TransferWise Racks Up Further Investment

Michael Moore joined TechWeek Europe in January 2014 as a trainee before graduating to Reporter later that year. He covers a wide range of topics, including but not limited to mobile devices, wearable tech, the Internet of Things, and financial technology.

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Andreessen Horowitz funding values London-based company at close to $1bn

One of London’s highest-profile start-ups has announced a significant round of funding that includes backing from one of the world’s leading investment firms.

TransferWise revealed that the $58m funding included backing from Andreessen Horowtiz, alongside existing company backers Sir Richard Branson, Valar Ventures, Index Ventures, IA Ventures, and Seedcamp.

The funding values TransferWise, which was set up in 2011 and hopes to open a US office next year, at close to $1bn.

transferwise logoExpansion

TransferWise currently serves 292 currency routes across the world, with customers in over 50 countries, and hopes to expand this to 300 more in 2015. The company says that some £3 billion has been transferred on its platform to date, with cost savings of more than £135 million compared to traditional bank transfers.

“We are thrilled to be backing (TransferWise co-founders) Taavet and Kristo,” said Andreessen Horowitz’s Ben Horowitz in a statement. “They discovered an important secret and are uniquely prepared to pursue it. Not only is their solution 10 times better than the old way of exchanging foreign currency, it could not have come at a better time. We see massive opportunity for new financial institutions like TransferWise.”

As part of the investment, Horowitz will join TransferWise’s board of directors, his first such role in Europe. Andreessen Horowitz is noted for being one of the earliest investors in Facebook, helping it transform into one of the world’s biggest online companies.

“We’re honoured to have the backing and mentorship of some of the world’s smartest and most esteemed innovators,” TransferWise’s co-founders wrote on a company blog. “We’re building a transparent, fair and truly global world of finance, but the bank’s party isn’t over yet.”

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