UK wealth management startup Nutmeg raises $32 million
25 June 2014 | 6054 views | 0
UK wealth management startup Nutmeg has raised $32 million in new capital as it looks to expand its business.
The latest capital raise means the business has now attracted a total of $50m of shareholder investment. While existing investors include Tim Draper and Daniel Aegerter from Armada Investment Group, new investors include Carphone Warehouse founder Charles Dunstone, asset management house Schroders, and venture capitalist firm Balderton.
The new funding comes on the back of a busy year for Nutmeg, which offers portfolio management services to anyone with as little as £1000 to invest. It now has over 35,000 registered users and customer acquisition in Q1 was 350% up on the same period last year. The new capital raised will primarily be spent on customer acquisition and product development.
The two-year old firm was founded by Nick Hungerford, a Stanford MBA with a blue chip wealth management background, and William Todd, a financial services software expert who has built derivatives exchanges across Europe and Asia.
Tim Draper, Silicon Valley entrepreneur and start up investor, comments: "We're seeing an explosion of exciting new financial technology businesses on the scene, and I rate Nutmeg as among the very best. Incumbents can protest all they want but as soon as I met William and Nick I knew that Nutmeg and companies like it would be the financial services providers of the future."