Being Broke As a Start-up Might Not Be a Bad Thing

Not being flush with cash isn’t always a negative for start-ups.

Just ask Kin Group, who cite their humble beginnings as one of the reasons for their recent growth. The company, which provides custodian, nominee, and administrator services to nearly 6,000 investors, has announced a raft of hires this week.

Their co-principal, Richard Hoskins, explains their growth as the result of an ability to be completely efficient when resources weren’t as readily available as they are now.

He said: “We spent the first 12 months of the business working in a cramped spare bedroom, because we couldn’t afford an office.

“Growing without external funding, especially developing our technology, has been tough. But being cash constrained has forced us to be lean and efficient. Efficiency around expenditure is something that overly funded fintechs typically fail at.”

His view was shared by another Kin Group Co-Principal, Christian Elmes, who added: “We are now well on our way to looking after more than £1Bn of VC assets. We are normally the first place UK VCs come when looking to improve the level of service they offer their clients.

“This growth has come purely from word of mouth and client referrals. We don’t have a sales or marketing team. Initially this was because we couldn’t afford one. Now with lots of happy clients saying nice things about us, we don’t need one.”

The company announced seven new hires this week, with two new senior positions amongst them.

They offer services that include fund management, fund administration, operational software, compliance consultancy and company secretarial services.

Jenny has been reporting on small business issues since 2001 where she held a number of freelance positions across the leading SME publications in the UK. Specialist subjects included SME financing and tax.

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