Nutmeg to launch crowdfunding campaign in the summer
Digital wealth manager Nutmeg is giving customers the chance to invest in the business under plans to launch a crowdfunding campaign raising up to £10 million.
The British start-up said the equity fundraising will launch in the summer, via the Crowdcube platform, to help finance its “imminent” first overseas launch.
It follows the success of crowdfunding campaigns for the likes of app-only challenger bank Monzo.
Nutmeg is not giving an exact figure yet for how much it plans to raise, but confirmed it will be a “seven-figure sum”.
As well as financing its international expansion, the group will also use the funds to invest in products and features on its investment app.
Since its launch seven years ago, Nutmeg has already raised around £116 million from investors and manages more than £1.5 billion in assets on behalf of more than 65,000 customers.
As part of the crowdfunding plans, customers will be given the opportunity to invest alongside institutional players such as Wall Street giant Goldman Sachs and Convoy, a Hong Kong-based financial advisory firm.
It comes just two months after Nutmeg secured £45 million in funding in an investment round co-led by Wall Street giant Goldman Sachs and Convoy, ahead of its planned expansion into Asia.
Martin Stead, chief executive officer of Nutmeg, said: “Nutmeg was the first digital wealth manager to launch in Europe and now we’re opening up ownership of our business to give eligible customers the opportunity to invest alongside institutional investors, venture capitalists and leading entrepreneurs.
“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.”
Nutmeg has already launched a waiting list on its platform for customers interested in the crowdfund.
The group aims to bring affordable financial advice to customers via its investment platform whether they have £500 to invest or £50 million.