Automated online investment advice platform Munnypot has received backing from UK private equity house Livingbridge.
Munnypot was launched on the thesis that many people in the UK are unable to access investment advice due to prohibitively high minimum investment values and steep fees. The company provides consumers with low-cost investment advice and 24/7 notifications to help them achieve financial goals.
It works through a messenger-styled chat which lets users easily set goals and adjust risk levels to build a personalised portfolio. The app will automatically use the consumers ISA allowance when possible. Once preferences have been set, Munnypot creates a report detailing necessary information about investments, and will then deliver real-time updates on performance.
To start investing a user must make payments into the investing pot, these can be from as little as £25 a month, a single payment of £250, or a transfer of an ISA.
Livingbridge led the deal through its growth fund, which invests equity of up to £5m per deal.
Steve Cordiner, Investment Director at Livingbridge said, “We are excited to be supporting Munnypot in the early stages of their development. The robo advice sector has grown quickly in recent years and Munnypot has a strong proposition, delivering low cost and affordable advice to consumers.”
Livingbridge hit a £660m final close for its sixth fund in September 2016 to create the largest ever vehicle raised by the UK-based private equity firm. Last month the firm agreed to sell Key Travel to Elysian Capital at a 3.2x exit multiple, at the same time as announcing its buyout of online travel agent loveholidays.
Earlier in the week, retail investing solution Newchip secured a $2m seed investment from JadeValue Fintech, Yeoman’s Capital, Spunik ATX, Youbi Capital, and Polymath. The company is an online investment marketplace for both new and experienced backers, enabling users to invest from as little as $100 into startups and real estate.
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