Oto, the digital tinnitus support platform is one of the hottest startups around, and the good news is that they have a budget to burn. The best part is they aren’t the only ones in the hood. A new round of funding led by Octopus Ventures and Bethnal Green Ventures is expected to be in the works. If a plethora of new investors can be credited, a more than a decade old startup will see a light at the end of the tunnel. The team hopes to raise another round by the end of this year, and they’re aiming for a post-IPO valuation of at least £11 million.
Oto is not the only tech company in the UK to be found on the crowdfunding site, but the company is still a relative newcomer. Having launched in May 2013, Oto has already raised a whopping £1.5 million in funding, with an undetermined amount coming from existing investors.
Cleo
Cleo, a digital assistant, has caught the eye of investors. Its products include a way to track spending across multiple accounts. Users can set up spending alerts and set money aside for specific goals. The company claims to have over 600,000 active users in the U.K., and 350,000 in the U.S., according to Business Insider.
A recent investigation by Forbes uncovered a number of complaints from former and current employees. One worker walked out of the door after he heard a rant about the company’s goals. Other employees felt that the harangue was against the company’s mission. In response, Cleo’s founder and CEO urged employees to push harder.
Former General Electric CEO Jeff Immelt became a board observer and investor. Hussey-Yeo, the CEO of Cleo, argues that the company does not need to be a bank to scale. He says the startup will target Western Europe, the Americas, and Australia.
Cleo, which launched last September at TechCrunch Disrupt, has signed contracts with companies like Uber, LinkedIn, Reddit, Straus Family Creamery, and Cooley. The startup is planning to expand to 22 countries in the next 12 months. According to the company, 30,000 new signups are made each week.
The company’s cofounder, Chitra Akileswaran, was an ob-gyn and practiced at Harvard. She was also a board advisor, but she declined to comment on the leadership changes. As the company grew, executives started leaving.
In early June, Cleo was a candidate for the Forbes list of the Next Billion-Dollar Startups. It landed on the list after a reporter vetted each company. However, the founders had not been truthful about their financials. After receiving an inquiry from Forbes, Spanhake changed her age from 35 to 36. This prompted an immediate investigation.
Finally
Several executives left as the startup transitioned to Spanhake’s vision. As a result, a work-hard, party-hard culture was created. Employees say the company was a no-holds-barred place to work.
Now, Cleo has closed on $27.5 million in Series B funding. Its valuation has increased to $115 million.
