The round includes £1.25m of equity and £5m of debt for lending to UK SMEs. New backers include the founders and investors of Zoopla, LoveFilm, TransferWise and LinkedIn.
This new round of angel investment puts DueCourse in a strong position within the £53bn SME business lending market.
Launched in 2015, Manchester-based DueCourse’s software technology unlocks the cash tied up in unpaid invoices, giving SMEs control over their cash flow and empowering them to meet their ambitions.
The business is planning to raise a further Series A round of £10-15m in funding over the next 10 months to expand its service around the world.
Aimed at small businesses who regularly invoice clients, the free software links to a company’s online accounting platform and uses its proprietary risk engine to assess which invoices are eligible for a cash advance. Once an advance has been requested, the money reaches the customer’s account in a matter of hours.
In addition to new partnerships, the investment has also provided DueCourse with a new opportunity to expand the team, with Dylan Smith - a former Apple engineer - joining the company as Technical Architect.
Paul Haydock, CEO and co-founder of DueCourse, said: "We started DueCourse because we realised traditional methods of finance are completely out of sync with what today’s SMEs need. We saw the opportunity for a company to disrupt the market and help SMEs get access to the cash they need to fuel their business, in real time.
"We want to be seen as a new kind of cash flow utility - once a business has linked their accounting package for free, DueCourse is simply there in the background for them to access the money in their unpaid invoices whenever they need it.
"This extended Angel round of investment was actually oversubscribed, which highlights just how much interest there is among investors around our scalable, data-led technology and its application around the world. The funding is a great boost for the company and will help us go from strength to strength as we continue to expand and improve our software."
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