Cash flow is the best indicator of a company’s financial health and optimizing cash flow can be the difference between keeping the lights on and having to shut down. As global macroeconomic conditions worsen and businesses are scaling back, managing cash flow becomes even more critical. Monspire is a cash flow management platform for small businesses that also provided integrated lending options for working capital needs that leverages AI to understand when and where a business will need additional funding. The platform leverages open banking so that businesses can get a full understanding of their business’s cash flow in real-time, while also getting accurate forecasting. For any periods of gaps, Monspire steps in and plugs the hole with its lending solutions. While finances are critical for any business, many business owners just don’t have the time to dedicate to managing finances while juggling all other facets of operations. Monspire, short for Money Inspired, makes it seamless by proving a singular view of a company’s financial health.
London TechWatch caught up with Monspire Cofounder Simon Draper to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
Our pre-seed funding round was led by Fuel Ventures. Also, supported by some fantastic angel investors.
Tell us about your product or service.
Monspire is on a mission to become the global cash flow management platform for small businesses, powered by AI. Monspire is hyper-inclusive, affordable, and credible, providing business owners with a real-time overview of their company’s cash flow, empowering them to grow with confidence.
What inspired the start of Monspire?
Having worked in the fintech space for a number of years, both myself and cofounder, Ben Gillen, found ourselves in constant conversations with small business owners about the struggles surrounding working capital. It’s a huge issue and there isn’t really a holistic solution out there. That’s why we decided to launch Monspire, to solve arguably the biggest issue small businesses face.
How is it different?
While we’re a cashflow financing platform – a lender, essentially – Monspire also uses Open Banking technology and artificial intelligence to predict and forecast cash flow. This provides better quality risk information about where your working capital gaps are likely to occur, and then the funding to plug the gaps. No other company offers both of these solutions together.
What market you are targeting and how big is it?
Our main market is currently SMEs in the UK. As we grow, that market will grow geographically and expand to other types of businesses too.
What’s your business model?
We’re a SaaS vendor and an SME lender.
What are your post-COVID office plans?
We are in the office full-time.
What was the funding process like?
We found the funding process quite smooth, having been through it several times at past companies. We realized early on that we needed to work with people who regularly go through the type of funding round we were aiming for, rather than firms that are much further down the line.
What are the biggest challenges that you faced while raising capital?
Getting to the right type of investor was our main challenge. We had countless meetings – everyone seemed interested in the company and engaging in conversation – but there were so many that were unlikely to invest. Our challenge was selecting the right investors to talk to in the first place.
What factors about your business led your investors to write the check?
From a personal perspective, many liked the fact we had experience not only as serial entrepreneurs but within the fintech and SME space. From a company perspective, investors really liked the analytic overview Monspire provides as well as the lending aspect.
What are the milestones you plan to achieve in the next six months?
Rapid market acquisition of relevant customers. We want to demonstrate our product-market fit.
What advice can you offer companies in London that do not have a fresh injection of capital in the bank?
Focus your capital on growth strategies and customer/revenue acquisition.
Where do you see the company going now over the near term?
We want to innovate in the digital lending space to deliver better solutions for SMEs. We want to make sure our solution is fast with as little friction as possible, while also ensuring the risk is understood.
What is your favourite restaurant in London?
Tattu, London.
