A Manchester fintech set up to help SMEs with SaaS software costs has received £500k in pre-seed funding.
Lemon believes that its tech can help firms reduce their annual SaaS software and subscription costs by 20%.
The investment round was led by SFC Capital and Pitchdrive, with the cash being used to improve Lemon’s SaaS management platform.
It’s also received angel investment from Nick Dodd, an ex Partner of Debt Advisory at KPMG, who will join the Lemon advisory board.
“It’s clear that we’re going through a really interesting period for SMBs at the moment. Taking into consideration the challenging economic landscape with funding drying up everywhere you turn, SMBs now need the tools and services to help them build better businesses as cost-efficiently as possible. With software being the third largest spend for an SMB, we really think Lemon can become a core part of how an SMB uses SaaS,” said Co-Founder and CEO of Lemon, Matt Bird.
“We’re really excited to be backed by two fantastic investment teams at SFC Capital and Pitchdrive, who not only believe in our vision and the future we want to build, but bring a wealth of knowledge alongside the funding we need to continue building Lemon and ultimately support as many SMBs globally with their growth trajectory too. There’s a long road ahead, but we’re really excited to be on this journey with our new investors.”
The company has appointed Matt Park as its new Chief Technical Officer and will now focus on tailoring the product for its target market.
“We are really excited to be backing Lemon in their pre-seed round. SaaS is a huge spend for many businesses so being able to reduce costs, centralise management and easily spot inefficiencies is hugely valuable,” added Ed Stevenson, Investment Executive at SFC.
“We believe that Lemon can scale into a dominant product with their vision to introduce instant credit, payments, discoverability and analytics. We are glad to be part of the journey with Matt and the team.”
Koen Christiaens, Co-Founder and Managing Partner at Pitchdrive stated:
“We fully believe in the vision of Lemon and can see how much of a gamechanger the solution can be for SMBs. Managing subscriptions remains a chaotic task for most businesses, so having a single view of subscription spend, coupled with the ability to access sustainable finance which reduces burn and promote cash-flow efficiency, makes us very excited. We believe Lemon can become a household name for the SaaS industry over the next couple of years.”
