Online investment manager Nutmeg has raised 3.4 million pounds ($5.3 million) in anticipation of its public launch later this summer. The funding was led by UK-based venture capitalists Pentech and Daniel Aegerter, the Swiss chairman of Armada Investment Group. Other investors include Tim Draper, an early investor in Skype and Hotmail, and Klaus Hommels, a board member of Spotify.
Nutmeg, a new online investment manager, today announced that it has raised £3.4m ($5.3m) in venture capital funding in advance of its public launch later this summer. The funding was led by UK-based venture capitalists Pentech and Daniel Aegerter, the Swiss chairman of Armada Investment Group. Other investors include Tim Draper, an early investor in Skype and Hotmail, and Klaus Hommels, a board member of Spotify and formerly the “most successful European entrepreneurial private investor of the year”.
“I believe Nutmeg will do nothing less than re-define the entire world of investment management,” said Craig Anderson, a partner at Pentech. “Pentech is delighted to be investing in this round, and I look forward to working with the team as they build the business into the market-leading online investment manager.”
“I look at many investment opportunities and I rarely see one as exciting as Nutmeg, where so many stars align: a convergence of market need with technology innovation led by an energetic founder with a clear and executable vision,” said Daniel Aegerter.
“I started Nutmeg because there is a huge need for trustworthy and straightforward savings and investment management,” said CEO Nick Hungerford, who worked in the City of London before completing an MBA at Stanford University. “This need exists not just for the wealthy, but for everyone. I was frustrated by the lack of transparency in the financial world, and its inability to interact through the internet. We’ve been talking to people to discover what they really want, and working on building a user-friendly product for over a year. With these investors behind us we are now in an excellent position to roll out a great service.”
Nutmeg is currently accepting founding members who will be able to begin investing when the service opens to the public later this summer.
Nutmeg is a ground-breaking investing service, regulated by the FSA, endorsed by the UKTI and backed by world-renowned investors. It offers a straightforward, transparent way of making your savings and investments work intelligently towards your real-life goals. Its mission is to democratise the stuffy world of financial management, offering a “third way” for those who neither want to pick stocks themselves or pay an advisor to invest for them.
Users can create diverse portfolios with a lump sum as low as £1,000 (or monthly contributions of only
£100) – moving, topping-up or withdrawing their money whenever they choose. An attractive online interface, including automatic, intelligent rebalancing, overseen by an experienced management team, helps Nutmeg keep its annual management fees at 1 per cent (including VAT) or less. By collecting nutmegs, a loyalty scheme based around referrals and pounds invested, users can reduce their management fees to as low as 0.3 per cent, including VAT.