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Andy Murray-backed bike navigation startup BeeLine closes £500k seed round

BeeLine, the connected bike navigation startup, has raised £500k in its first seed round drawing backing from some big players in the capital’s startup scene.

The round drew backing from SeedCamp, investment firm EarlyMarket and the Mayor’s London Co-Investment Fund, meanwhile Wimbledon champion Andy Murray continued his partnership with Seedrs adding his investment cash as part of the crowdfunding platform’s participation in the round.

BeeLine was founded in late 2014 by entrepreneurial Londoners Tom Putnam and Mark Jenner, who have developed a bluetooth connected smart compass and accompanying app after continually losing their way amid London’s tangled streets.

The startup, which has also drawn investment from retail and consumer investment fund TrueStart, aims to help urban cyclists navigate their way around sprawling city streets without shackling them to traditional turn-by-turn GPS navigation, with the smart compass only giving a direct distance and direction to the chosen destination.

While this first seed round will help the tech firm grow its team and increase the functionality of its app and smart compass, BeeLine has long-term plans to harvest the wealth of locational data from the app which may prove of great interest to city planners and other third parties.

Commenting on the firm’s long-term plans, Co-Founder Tom Putnam, said: “Our first product is a simple, affordable, connected navigation device for cyclists, with an accompanying smartphone app through which we can continuously improve the product.

“An exciting area for us will be in the ride data that we can gather and use to inform a range of third parties, from city planners to delivery services. Part of this funding will aid in the development of the technology needed to support this.”

The Mayor’s twin priorities of both encouraging tech startups and fostering London as a cycling city means the £85k backing from the London Co-Investment Fund in BeeLine is unsurprising.

Run by Funding London and supported by the Mayor, the £85m fund looks to support early-stage tech and science startups in the capital.

Jules Pipe, Deputy Mayor for Planning, Regeneration and Skills, commented: “There are numerous start-ups across the capital that have great ideas and just need a little support to make them a reality.

“London is open to some of the planet’s most entrepreneurial minds and I am pleased that this fund has helped BeeLine bring this innovative product to market, helping to make the capital an even greater city for cycling.”

Cycle use has been on the rise across the UK with various government initiatives such as the tax-free Cyclescheme as well as the Cycling Superhighway development in the capital encouraging uptake in an industry that’s now worth over £1.5bn.

The cycle accessories sector in particular has enjoyed rapid growth, where it has increased 28% in the UK between 2010 and 2014, growth which BeeLine looks well placed to capitalise on.

Mark Jenner added: “We’re operating in a fast-growth market and while our initial focus is in scaling the product in key regions, we’re also focusing on expanding the tech expertise within the business to ensure we’re continually developing the user experience.

“It’s important to us that the way our users interact with BeeLine is ever more compelling and engaging. It’s an exciting time for BeeLine and we’re delighted our investors see the potential in the company as much as we do.”