Hamburg-based Tomorrow.one, a sustainable fintech startup, announced that it has raised €14M in a fresh round of funding. Three new impact investors – the family office of the Hamburg Büll family, Abacon Capital, and Signavio founder and climate tech investor Torben Schreiter – participated in this round.
The funding aside, Tomorrow is also offering users to subscribe to virtual shares of up to €5M via crowd investing starting in October. Last year too, the company had offered virtual shares to its users which were sold out even before the official start.
Tomorrow’s co-founder Michael Schweikart explains, “We are very happy about the trust of our new investors as well as that of our long-time companions. Without them, we would not be able to pursue our mission and bring sustainable banking to the mass market. At the same time, we have been absolutely convinced of the instrument of crowd investing since our experience last year and have repeatedly seen: people have an incredible desire to participate in Tomorrow.”
Schweikart further adds, “We have been asked every week when there will be another chance for those who could not participate in the crowdinvesting round last year and we are very pleased to finally be able to fulfill this wish.”
The proceeds from this round will help Tomorrow expand its product range as well as hire new talents. In the coming months, the company plans to launch a sustainable investment fund that will invest exclusively in companies and projects audited for environmental, social, and ethical standards.
And over the next year, it will also increase its workforce from the current 75 to around 200 employees.
Tomorrow has witnessed a strong user growth of 100 per cent over the past year and plans to be a profitable company soon. Its new account models, which will be launched in October, may also contribute to this.
Tomorrow’s next crowdinvesting
The company has announced that it will again open its crowdfunding opportunity on October 18th, 2021 via the platform Wiwin – a German platform for sustainable investments with a clear vision: to get the money on the good side.
People can buy digital securities in a token-based manner starting with a minimum investment of €100 and a maximum amount of €25,000. With the security, micro-investors have the opportunity to participate in an increase in the value of the company and a share in the profits. Generally, this form of participation is usually reserved for institutional investors.
What does Tomorrow do?
Founded in 2018 by Inas Nureldin, Michael Schweikart, and Jakob Berndt, Tomorrow aims to contribute to a better, more sustainable future.
According to the company, conventional banks use people’s money to invest massively in coal power, weapons, and other damaging industries – without asking for their permission. Since the Paris Agreement in 2016, big banks have invested more than $2,700B in fossil fuels.
Tomorrow aims to change that by combining mobile banking with sustainability and smart technologies to make daily life easier for users while contributing to a better future. The company says, “We want to change the (financial) world in a positive way. That’s why we actively protect the climate and call for economic change.”
Tomorrow specifically works on progress in the following five areas: guaranteeing basic needs, empowerment, climate protection, nature, and fairness. And, it supports only those companies and projects that actively contribute to meeting these goals. The company has invested about €31.5M in sustainable projects, to date.
Since March 2019, Tomorrow has been offering a contemporary checking account for everyone with a smartphone and a healthy moral compass. In the near future, it claims, a digital platform will be developed for all aspects of finance with a positive impact.
Currently, the company employs more than 90+ people and 90,000+ customers.
Partnership with Solarisbank
Tomorrow also has a partnership with Solarisbank because the startup does not yet have a banking license. All Tomorrow accounts are with Solarisbank AG, so officially users also sign a contract with them.
“Solarisbank supplies young companies like us with a so-called core banking system, they have a banking license and need to follow the strict banking regulations under the supervision of the German Federal Financial Supervisory Authority,” says Tomorrow.
According to Tomorrow, Solarisbank keeps users’ money safe while the startup runs the app. With the help of Solarisbank, Tomorrow is able to meet all technological and regulatory requirements right from the start. “We ensure the sustainable use of your funds/deposits and design the product (i.e. the app, investment possibilities, and so on) in all its details.”