UK digital wealth manager Nutmeg is looking to raise as much as £10m via crowdfunding this summer.
Following five rounds of fundraising from institutional investors, the fintech will be looking to its customers to raise funds necessary to help it towards profitability.
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The UK’s largest robo-advice company, according to Boring Money, Nutmeg has more than 64,000 customers and manages over £1.5bn on their behalf.
However, this did not prevent it registering losses of £12.3m in 2017, which has thrown into question the financial viability of such platforms, and suggesting their future could be as licensed products offered by banks and wealth managers.
Nonetheless, the online wealth manager appears to be regarded as profitable by several mainstream financial institutions. US-giant Goldman Sachs led a £45m fundraising found in January alongside Hong Kong holdings company Convoy.
A statement from Nutmeg describes the decision to crowdfund as a means “to democratise company ownership”.
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By GlobalDataNutmeg has received praise for allowing individuals outside of the wealthy to enter the wealth management world, through focusing on lower cost investments like ETFs.
Martin Stead, Nutmeg CEO, says: “This is an incredibly exciting time for Nutmeg, we continue to welcome new customers: both seasoned investors seeking a high-quality wealth management service at a much lower cost; and first-timers, attracted by intuitive technology and a team of investment experts that will manage their portfolios for them.
“We’re investing in new features for our UK customers, while also taking Nutmeg to new markets around the world, with our first international launch imminent.
“We want to give eligible Nutmeg customers the chance to share in our success – it’s the least we could do, since they’re the reason we’ve got this far.”
Nutmeg will be working with the crowdfunding platform, Crowdcube, who drew £224m of investment in 198 businesses in 2018.
Its founder, Luke Lang, says: “Nutmeg are tackling everyday problems and challenges that will resonate with many of our investors.
“It remains our mission to help nurture the growth of innovative businesses and we’ve no doubt the campaign will be a real success.”
