‘See how much tax you owe’
Often when meeting with startup founders it’s not immediately obvious to me what the really big, worth-doing-something-about pain point actually is. Making something a little bit better, a bit more convenient doesn’t really cut it. If people are a bit ‘meh’ you need to work harder at it.
So how is Coconut changing the game? Well, it integrates banking and accounting services. An easy to use banking app that allows their users (mainly freelancers) to see how much tax they are expected to owe in advance. I don’t know anyone who relishes preparing and filing their tax return and I’m sure I’m not the only one who leaves it until the last minute. Freelancers can do the work they love then invoice their clients in-app, incur expenses with the Coconut card and the Coconut app sorts it all out and shows how much tax is owed (at anytime, not just at the end of the tax year). The very real, big pain point is the anxiety of not saving enough, or saving too much, for tax as well as the admin headache that build up throughout the year. This is definitely a 100x solution.
We invested in early 2017 when they were pre-product launch and have seen the team grow with some great additions - all contributing to a successful launch and growth in 2018 with a group of very engaged users. Adam, Ali and the tech team’s ability to focus on delivering a world class product with the right features, the right notifications and the right support is great to see. Limited Company functionality is now live and because adding manual transactions and depositing cash is important to freelancers it’s coming soon.
Ultimately the name of the game for us is to identify and back the founders that execute well - and we believe that Sam and Adam are doing just that. As well as us as DMG founders, a number of DMG Syndicate Members became investors after seeing that execution and have supported Coconut in this round.
Of course Sam has been working hard too - his ability to bring onboard new talent, other investors and win recognition (and prize money) is great to see. The world of work is changing fast. Freelancers are ignored, underserved and have, to date, had to use technology which is just not built for them. More people than ever before are freelancing full time and the gig and side-hustle economy needs Coconut too.
A huge part of Coconut’s success and their future is the community of freelancers that love the product and get involved in shaping its future. The in-app chat, the Coconut Bite Facebook Group and community events with beers and pizza (above) are helping the Coconut team understand more about their users and help communicate how Coconut is developing.
Find out more
We’re delighted that we’ve been able to invest again in Coconut and are excited about using the app and helping out.
To find out more about the DMG Syndicate click here and Matthew will be in touch.