News just in that UK SaaS accounting vendor FreeAgent has nabbed GBP2M in investment from SM Trust and Torch Partners. It’s an interesting development given the other two main players in the UK market, Xero and KashFlow are both currently well funded – Xero via an IPO and some subsequent private investment and KashFlow from a recent GBP4M top up from one of it’s original backers.
Ed Molyneux, FreeAgent CEO says the investment will be used primarily for design and engineering investment.
FreeAgent recently inked a high profile deal with Barclays bank that sees the bank push FreeAgent to its small business customers. While the Barclays deal is high profile – scuttlebutt says that it’s a poor commercial arrangement but if FreeAgent are able to leverage the profile of the Barclays deal and the product development that this funding round enables, they’re well placed to build a stronger position in their home market.