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Shoreditch startup Transferwise becomes London's second $1 billion tech firm

Transferwise has been named London’s second $1 billion technology company in just one week, after the money transfer business was valued by a top Silicon Valley venture capital fund

According the the Evening Stand, the Shoreditch-based start-up has raised $58 million from Andreessen Horowitz in a deal that reportedly values TransferWise at $1 billion.

This announcement comes just days after Hammersmith-based Shazam attracted the same valuation.

TransferWise, founded by two Estonian expats, allows people to transfer money internationally over its online platform, at a lower rate than many big banks. The four-year-old start-up has to date raised $91 million from the likes of Sir Richard Branson and PayPal co-founder Peter Thiel.

Co-founder Kristo Käärmann said: “Our success in the UK has shown that it really helps to be close to the customer.

“I think that’s one of the things that many internet businesses are starting to realise. Although theoretically it can all be done online, you have to really know your customer.”

As part of the deal Andreessen Horowitz co-founder Ben Horowitz will join TransferWise’s board.

Andreessen Horowitz, which was set up by Netscape founders Marc Andreessen and Ben Horowitz, have in the past backed the likes of Facebook, Twitter, Airbnb and Pinterest.

Horowitz said: “Since there has been little to no innovation from the traditional banking sector, we see massive opportunity for new financial institutions like TransferWise.”

The deal represents Horowitz’s first investment in Europe and Käärmann called it “pivotal for London and technology-based financial services in Europe”.

This was posted in Bdaily's Members' News section by Ellen Forster .