Breaking through in the US: Cleo’s $80m Series C
We invest in companies solving enduring problems and Cleo, the leading digital finance assistant for Gen-Z, is a perfect example of this.
We led Cleo’s $44m Series B round in 2020; upon announcing I wrote about how Covid-19 was disproportionately impacting Gen Zers — leading to a fragile relationship with money for this age group.
Sadly, two years later, facing soaring interest rates and the cost-of-living crisis in most Western economies, the situation for young people isn’t much better. But where there is a problem, there are smart people finding solutions.
Building a platform for the future generation
One of the best aspects of this job is meeting people who are harnessing technology to make the world a better place.
Cleo is a digital financial assistant for young people — it gives them proactive money advice without the jargon! It speaks to young people in the language they can understand and with a sense of humour!
The business helps millions of young US consumers navigate a complex and often exploitative financial system, empowering them to take control of their money. How? With tools and smart insights to help users budget, save money, build credit and escape their overdrafts.
It works…84% of people feel better about their money after just one month of using Cleo’s app.
A journey of strategic growth
Cleo’s growth strategy has been impressive. The business identified a gap in the US market — with many Gen Zers living paycheck to paycheck, unsupported by the financial services system. Cleo has done what many rival FinTechs have failed to do, successfully taken on the US market!
We have also been impressed by the company’s impressive fundamentals: ARR of $30m and 3x year-on-year growth alongside strong unit economics.
The new capital will allow Cleo to continue providing a quality service during a potential recession — a time when their users need them most. They also plan to grow significantly, hiring top tier talent across the UK and the US.
As Cleo enters a new phase of growth, we couldn’t be more honored and excited to work alongside the team, empowering Generation Z to improve their financial wellbeing.