SCOBAN, the new UK private bank founded by
former Adam & Co chairman Ray Entwistle, has raised ₤5m ($7.7m)
in its second funding round, but the total is still ₤70m short of
the amount it has targeted to enable it to open.
SCOBAN secured the participation of about 170
shareholders in the second round.
“We are overwhelmed by the support we have
received from investors who are backing our venture despite the
turbulent market environment,” said Entwistle, who serves as
₤5m in, ₤70m to go
Started in January 2011, on its directors’
belief that there was significant demand in the UK for a high
quality, traditional private banking service, SCOBAN has hit more
obstacles than planned.
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The venture started brightly, collecting ₤1.4m
in initial funds from individual investors, exceeding three times
the targeted amount.
The bank was expected to be up and running by
July 2012. Launched in October 2011, the second round of
fundraising had collected just ₤3.3m, almost half of the minimum
amount planned, by the lapse of the offer at the end of February
The management had to rethink its strategy,
broadening the amount of individuals to who submitted applications
and dropping the minimum amount of shares to be subscribed for the
fundraising from £6m to ₤5m.
Four months later the expected ₤5m have been
Launch date delayed to
Now SCOBAN expects to commence business in
late 2013, or later in 2014.
To do so and be fully operational, SCOBAN
needs to collect a total of ₤75m, a spokesman said.
Despite the difficult current financial
environment, the management is committed and certain of the
goodness of the project, SCOBAN said.
“It is possible and we are confident it is
going to happen,” said the spokesman.