The latest entrant into the WealthTech sector, Prosper, has announced a significant £3.2m pre-seed investment.
Co-founded by Tandem alumni Ricky Knox and Nick Perrett, along with Nutmeg’s former COO Phil Bungey, Prosper has drawn support from a stellar lineup of FinTech founders.
According to Finextra Research, this fresh capital injection includes contributions from an array of investors known for their successful ventures in the financial sector. Names such as Monzo co-founder Tom Blomfield and Capital One Bank cofounder Matt Cooper stand out among the distinguished group backing Prosper’s vision.
Prosper is poised to challenge the status quo in wealth management, targeting inefficiencies in foreign currency exchange and offering competitive returns. The platform aims to deliver the ‘highest interest rates’ on cash balances, combined with zero-cost index funds from major asset managers. Moreover, Prosper plans to facilitate access to private market investments, historically reserved for the ultra-wealthy, promising higher potential returns.
The company’s funding will be channelled towards undercutting traditional wealth management fees while offering lucrative interest on balances. By adopting a model similar to Wise’s approach in the foreign exchange sector, Prosper is set to carve out its niche in the WealthTech landscape.
Prosper’s leadership is vocal about the lack of transparency in traditional wealth management fees. “Most people are totally unaware of what they are paying to have their money managed, nor the fact that these costs can literally cut their future wealth in half,” CEO Perrett stated. He emphasized the company’s mission to enlighten and serve millions globally.
The firm is not only challenging fee structures but also the scope of investment opportunities available to the average consumer. Knox, Prosper’s co-founder and chairman, pointed out the evolution of investment opportunities and the limitations faced by non-wealthy investors. “Unless you’re ultra-wealthy, and have enough money to essentially buy access, you’re at a disadvantage,” Knox declared.
The angel round that propelled Prosper into its current trajectory was funded by founders from notable entities including Monzo, Capital One, World First, Tandem, Azimo, Embark, Comply Advantage, and Connect, as well as MMC and Portfolio Ventures.
Looking ahead, Prosper is set to extend its fundraising efforts via a Crowdcube crowdfunding campaign, a strategy well-recognised in the UK FinTech startup scene.
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