Broadband challenger Cuckoo raises $6m from RTP and JamJar
26 April 2021, London: Cuckoo, the UK’s most loved* national broadband provider, announces it has closed a $6 million investment round led by RTP Global, along with participation from JamJar Investments. Cuckoo has grown more than 250% so far this year and today launches nationally on uSwitch. The funding will be used to grow the team and reach more customers.
The round was led by RTP Global, early backers of Yandex, Delivery Hero, and Datadog. One in five of RTP’s investments are now unicorns. JamJar Investments, the innocent drinks founders’ venture capital fund, was also an investor. JamJar invests in digital consumer brands, having backed Bulb, Deliveroo, Tails and Oatly. Other individual investors in the round include marketing veterans from Monzo, an early Stripe employee and Verizon’s former EMEA director.
Cuckoo is making broadband simple, for good. Cuckoo supplies a single 67 Mb/s superfast fibre deal on a monthly rolling contract with no hidden fees. This saves the average customer £130 on their broadband bill, with double the average speed. Cuckoo also gives 1% of bills to get people in need onto the internet.
Alexander Fitzgerald, Founder and CEO at Cuckoo, said:
“The broadband market is broken and consumers are being ripped off every day. The importance of fast, reliable and affordable broadband has come into sharper focus with millions of people working from home over the past year. We’re excited that this funding will enable us to help tens of thousands of people across the country make their broadband simple, for good.”
Gareth Jefferies, Partner at RTP Global, said:
“Consumer broadband is one of the largest markets yet one of the most poorly served. Consumers are fatiguing of customer-hostile pricing practices, inflexible contracts and deliberately awful customer service, and just as we have seen in insurance, energy and banking, we will see a number of challenger providers come in to eat incumbents’ lunch with differentiated product packagings and a fresh respect for their customers.”
Complaints about broadband are almost 40 per cent higher than every other sector in our economy, according to research from the Institute of Customer Service. Broadband firms typically offer new customers discounted prices to entice them to sign long contracts with high exit fees. The price can then rise by up to 89% when this contract period ends. This is called the broadband loyalty tax, and every day 25,000 more people roll onto this charge, often without them realising. Consequently, UK consumers overpay for their broadband by approximately £1.3 billion every year.
* Cuckoo’s internal NPS was 78 from Jan-Mar 2021. Zen Internet is on 73. The industry average is 12.
- Cuckoo is a new challenger broadband company backed by successful investors with experience from Bulb, Octopus and Monzo
- Cuckoo offers one fast speed, one fair price and a flexible rolling contract
- Monzo, Starling and Revolut took on the banks. Bulb, Ovo and Octopus took on the energy providers. Cuckoo will take on the broadband companies
- We’ve been featured in TechCrunch, the Telegraph, CityAM and Wired
- We’re rated 4.6/5 on Trustpilot and 4.7/5 on Google Review
- Our Medium blog tracks our inside story
About RTP Global
- RTP Global is a venture capital firm focused on early-stage technology investments. It supports young companies with strategic know-how and a broad global network. RTP Global has invested in 90 companies founded in more than 10 countries across Europe, Asia and North America. Six early-stage investments became multi-billion public companies: Yandex, EPAM, Delivery Hero, RingCentral, Datadog and Ozon. RTP Global has offices in New York, London, and Bangalore.
- JamJar Investments is the innocent drinks founders’ venture capital fund
- They invest in exceptional founding teams to help them create, nurture and scale challenger consumer brands across Europe
- Focused at the Seed and Series A stage, JamJar’s portfolio includes Deliveroo, Tails.com, Bulb Energy, Oatly and Babylon Health