Perth gaming billionaire Laurence Escalante and US venture capital fund Dream Ventures have contributed to a $7 million capital raising by fast-growing local startup WeMoney.
It was also supported by Brisbane-based venture capital investor Full Circle, which was the first institutional backer of WeMoney in 2019.
The $7 million capital raising marks a big step for WeMoney, which had previously raised a modest $2 million.
The startup has developed a financial wellness app that has been downloaded by over 285,000 Australians.
Founder and chief executive Dan Jovevski said the proceeds will mainly be spent on product development rather than taking on extra staff.
“We have the right team to expand,” he said.
Mr Jovevski said his company’s ability to achieve so much on a tight budget – evidenced by 30 per cent month-on-month growth – had been one of the attractions for new investors.
He was particularly pleased to have attracted backing from investors based in Perth, as well as on the east coast and overseas.
The local backers include a number of ‘angel’ investors, who made small contributions to the latest capital raising.
Mr Escalante has invested through his family office, which was established recently to help manage the enormous wealth he has accumulated via the runaway success of his online gaming company VGW Holdings.
Mr Jovevski said he foresees a big counter-cyclical opportunity for his business.
“We help members save and use their money better,” he said.
“With inflation and interest rates rising, we see this as a big opportunity.”
The WeMoney app produces consolidated reports that help members track their debts and other financial commitments.
It provides tools to help members evaluate financial products and improve their financial management.