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Online investment manager Nutmeg raises $32m

Charles Dunstone and Schroders amongst backers of fast-growing fintech firm

Online ‘discretionary wealth manager’ Nutmeg today announced the closure of a $32m capital raise from a group of high net-worth investors, set to fund a major period of expansion for the fast-growing business.

Founded in 2012 by Nick Hungerford and William Todd, Nutmeg is an online investment fund manager that claims to provide a sophisticated portfolio management service to investors with upwards of £1,000 to invest.

Since launch the site has grown significantly, with 35,000 registered users and customer acquisition in the first quarter of 2014 up 350% on the same time last year.

The latest $32m oversubscribed round included input from Carphone Warehouse founder Charles Dunstone, leading European asset manager Schroders, and venture capital firm Balderton Capital – previous backers of household-name tech businesses including LOVEFiLM, Betfair and ZOPA.

It takes Nutmeg’s total funding to $50m since launch, and is expected to be used primarily on customer acquisition and product development.

Charles Dunstone commented: “I invest in fast growing, sustainable companies that are fulfilling a clear consumer need. Nutmeg ticks all those boxes and more. Nutmeg is demonstrably changing the face of wealth management.

“They have a strong proposition, provide exceptional user experience and I’m thrilled to be part of Nutmeg’s exciting future.”

Nutmeg co-founder Nick Hungerford said: “Today’s announcement is hugely exciting and goes to show that if you put the customer at the centre of the business, you will prosper. We believe our digital model epitomises the future of investment management.

“We’ve built an award-winning service from the ground up, one that delivers brilliant portfolio management at an incredibly low cost, in a way that is secure, transparent and above all convenient for the customer.”

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