Digital pension company Penfold secures £2 million funding round

Research has shown up to 86% of self-employed people do not set up a pension – but after a recent £2 million funding round, London-based start-up Penfold will now launch its digital pension scheme, entirely built so that freelancers have an easy, mobile-based way to save for their future.

As a high growth start-up, Penfold turned to Harper James Solicitors for their legal support in the funding round. An early-stage growth business themselves, Harper James offers clients a subscription service designed to provide affordable legal support to young but ambitious businesses. Working with Penfold to draft bespoke terms, liaise with investors and put together administration and process documentation post-completion, Harper James Solicitors has helped to ensure the growth of a company that has been called the ‘Monzo of pensions’.

Joining Harper James Solicitors as an Enable client shortly after its inception in late 2018, Penfold became regulated by the FCA in May 2019. Since then, the business has raised a total of £2.5 million in investment, the bulk of which was raised from angel investors and venture capital firms such as Force Over Mass and Plug & Play Ventures in the latest round with Harper James.

The funds will secure the future of the business, which seeks to help the 15% of the UK workforce who are self-employed to set up an easy-to-manage pension for the digital age through its online platform.

Penfold worked with Harper James Solicitor’s corporate solicitor Jas Bhogal throughout the investment process, drafting terms which suited the aims of the business, facilitating the investment round, managing the risk of the company in relation to the investment, and receiving full support on post-completion activities such filings at Companies House and notifications to HMRC in relation to the investments which were qualifying for EIS relief.

Speaking about the support from Harper James, co-founder Chris Eastwood said: “The fact that Harper James Solicitors was able to provide legal support for far less than traditional law firms has meant we could afford to complete a full funding round without excessive administration costs. Their subscription model works in a way which totally suits our business as a start-up, and we look forward to working with the Harper James team as we continue to grow.”

Jas Bhogal, the corporate solicitor who worked on the matter, said of Penfold’s funding round: “We’re pleased to be helping this innovative product launch into the market, with sufficient funding behind them thanks to our support during the investment round. Penfold were a hands-on client with a strong understanding of the process, which has meant a fantastic outcome for all.”