Prosper, a WealthTech startup, has successfully reached its £800,000 funding goal on Crowdcube, even before opening up to public investment.
According to Finextra Research, founded by alumni from Tandem and Nutmeg, along with Nutmeg’s COO Phil Bungey, Prosper is quickly gaining traction within the WealthTech community.
The company has garnered a substantial £3.2m in pre-seed investments from a notable group of FinTech founders. These investors include Tom Blomfield of Monzo and Matt Cooper from Capital One. This funding round adds to a previous £1m raised through Crowdcube in December of the previous year.
Prosper operates with a business model that echoes the disruptive strategy of companies like Wise, aiming to reduce fees traditionally charged by wealth managers while offering competitive, high-interest returns on various investment accounts. These accounts include SIPP, ISA, and general investment accounts, which have been available to founding members for several months.
The funds from this recent round will be used to further develop Prosper’s suite of savings products. Newly launched alongside this funding news are the Prosper Savings Accounts, which offer competitive interest rates as high as 5.78% — reportedly the highest in the UK for a 365-day notice account. These new savings accounts include a broad range of options such as easy access, fixed rate, and notice accounts from various banks.
In addition to these developments, Prosper emphasises its commitment to making personal finance management both accessible and cost-effective. The company offers free account opening and management, instead earning through nominal fees charged to banking partners.
“We have been overwhelmed by the early show of support in the crowdfund. We know that businesses like ours can’t change the status quo without a community behind us. Challenger banks like Monzo and Revolut have shown that great returns for early investors are possible,” Prosper co-founder Nick Perrett commented.
Previously, Prosper had successfully raised £1m in another crowdfunding round last December, which was significantly boosted by the recent £800,000 achieved on Crowdcube.
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