Channel 4 Ventures, the TV Channel’s investment arm, has made a £6m media-for-equity investment in wealth management app Chip, C4 Ventures’ biggest media-for-equity investment to date.
The investment comes as part of Chip’s now-completed £17m funding round, at a £208m valuation, combining its first institutional investor with over 9,000 retail customers, with £2m dedicated to giving liquidity to early investors in its previous retail investment rounds.
The fundraise marks a significant step in Chip’s plan to become the most recognised digital wealth app in the UK.
Channel 4 Venture’s ‘media-for-equity’ offer gives consumer brands a TV advertising budget in exchange for equity, as well as access to millions of viewers across the country. The investment will be used as part of a significant marketing and TV push as Chip expands into a comprehensive, personalised wealth platform.
Alongside Channel 4 Ventures, over 9,000 people invested £11m into Chip via Crowdcube, making it the largest equity crowdfund in Europe last year. Established in 2017, Chip has over 500,000 active customers on its platform, which helps users save, invest, and grow their wealth, with £6bn in assets under administration.
Founded by Simon Rabin and Alex Latham, Chip has more retail shareholders than any private company in the UK, with over 30,000 retail investors. Investors in Chip’s first retail investment round in 2017 will see an 11x return based on the latest valuation.
A key element of this funding round is Chip’s plan to introduce an annual secondary sale register, developed with Crowdcube. This will allow existing shareholders to sell portions of their holdings periodically, and over £2m of the raise was used to give early shareholders liquidity.
Historically, retail investors in private companies have faced long holding periods without being able to sell; with this new initiative, Chip is giving its investors a path to liquidity.
The deal, which will see Channel 4 Ventures offering advertising inventory across Channel 4, supports its goal of diversifying revenue streams as it transitions to becoming a digital-first public service streamer, as laid out in its Fast Forward Strategy.
The agreement also furthers Channel 4’s strategy to utilise the transformative potential of TV advertising to generate economic growth across the UK. Chip’s marketing push will launch several new products to the market this summer as it continues to expand.
Alex Latham, CMO and co-founder of Chip, said “This is a powerful moment for Chip. Our community has backed us at unprecedented scale, and a major British institution has chosen us as its largest ever investment. It shows how strongly people believe in our mission to make wealth building simple, personal, and accessible for everyone. We are building the next household name in UK finance, and this funding gives us the platform to accelerate that mission.”
Vinay Solanki, head of Channel 4 Ventures, added: “We are proud to lead this investment. Chip has outperformed many peers by focusing on simple, accessible products for savers. Channel 4 is keen to support innovative companies that unlock opportunities across the country – in this case helping consumers become more financially resilient. This deal also underscores our relationship with Crowdcube as we continue to work together supporting the UK’s consumer entrepreneurial ecosystem.”
