Enterprise Ireland has invested €500,000 in CurrencyFair, the online platform that enables people all over the world to swap large amounts of currencies at cheaper rates than the banks offer. The investment was effected in July 2016 according to recent filings.
Over the summer, the company also secured €674,000 further investment from Octopus Titan VCT in London.
Earlier in 2016, CurrencyFair topped up its equity base in a €3.8 million fund-raising round. The largest investor in the round was Octopus Titan VCT, which invested €2 million. Moulton Goodies Ltd in Guernsey invested €500,000 while Proxy Venture Ltd in Jersey invested €300,000.
Roebury Nominees One Ltd, a company associated with Kevin Warren, invested €750,000, and Frontline Ventures, the Dublin VC firm, invested €250,000.
CurrencyFair booked an operating loss of €3,347,000 in the year to June 2015. The loss brought accumulated losses to €7.55m since the venture was established by Australian Brett Meyers (pictured) in 2009.
Meyers’ idea was born of frustration at bank charges associated with changing currency. Meyers, who has a background in structured finance, told Business Plus in 2010: “We think that in the current cost-conscious environment, something that helps to drastically reduce these margins and thus save people money is a huge business opportunity. People are far more focused on saving money now than perhaps they were in the boom years, and they're also more willing than ever to consider alternatives to the banks.”
Meyers said at the time: “I'd suggest that any aspiring entrepreneur talks to people who have done it before. Running your own business generally involves long hours and can put a lot of strain on relationships. So make sure you are committed and really love what you're doing before taking the plunge.”
CurrencyFair is strongly capitalised. In 2014/15, the company raised €8.2m from investors, bringing total capital raised to just on €13m. The company had cash of €5.65m in June 2015 and another €500,000 was raised in July 2015.
CurrencyFair employed an average of 42 people in 2014/15, with average pay employee of €62,800. The current employment level is around 90 people after the peer-to-peer company relocated last November to a former Bank of Ireland building beside the US embassy in Dublin 4. The fresh capital and expanded headcount is to facilitate CurrencyFair ramping up its presence in the US market.