Spanish BBVA Buys Almost 30% Stake in First Digital Bank Atom

Spanish bank BBVA has acquired a 29.5 percent stake in the world’s first all-digital bank, UK-based Atom.

The deal was worth £45 million ($67.8 mln) and was part of a Funding Round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term that saw Atom collect some £82 million ($123.6 mln). Besides BBVA, participants in the round included Neil Woodford, owner of Woodford Equity Income fund, and Toscafund Asset Management, for both of whom this is not the first time they have provided funding for the Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term. The funding round values Atom at £150 million ($226 mln), the Financial Times reports.

The future Is Digital

This makes the Spanish lender the biggest shareholder in the startup, representing its first foray into the British market. As part of the deal, BBVA officials will take two seats on Atom’s ten-person board.

Following the news, BBVA’s Chairman Francisco Gonzalez said: "Digital banks that put the customer first are the future. BBVA’s investment in Atom backs those beliefs in one move.”

Atom, set up by Metro Bank’s founder Anthony Thompson and First Direct’s ex-Chief Executive Officer Mark Mullen, offer mobile banking services. It got licensed in June this year and has not as yet started its commercial activity. This is planned to happen early next year.