The funding was led by Frontline Ventures with participation from Will Neale, founder of Fonix and Grabyo; Ben Grol, partner at Atomico; Ben Heald, chair of Sift, Edo, eFiling and Bristol Pound; Andy Chung of AngelList and other private investors.

Countingup is looking to create an accounting bank for one million entrepreneurs, who will be able to open a current account on their smartphone in just five minutes.

The account comes with a UK sort code and account number as well as a contactless MasterCard.

Countingup's banking app will also offer accounting services, including the submitting of VAT returns, generating a profit-and-loss report and creating invoices.

While using machine learning, it will automate book-keeping.

“Combining accounting and banking into one, single product is going to simplify running your business,” said Tim Fouracre, founder and CEO of Countingup.

“It will save stress and give back time to entrepreneurs that could be better spent on their business.

“Sole traders and freelancers can do their day-to-day banking and not have to worry about the book-keeping, which will be automated.”

Tim believes that Countingup will help entrepreneurs with HMRC's digital transformation of tax – Making Tax Digital – whereby small businesses will be required to complete new quarterly filings for VAT, income tax and corporation tax.

“Accounting and banking have become more integrated in recent years,” continued Tim.

“Think of us as Revolut and Xero in one, single product.

“This will help drive productivity for the 4.2 million businesses in the UK which have one employee or less.”

The Countingup app can been downloaded from Google Play or the App Store, where businesses can join the waiting list.

The first 100 entrepreneurs to register will get a free account until 2019.