UK-based online money and investment management software maker Nutmeg has landed £3.4 million (roughly $5.3 million) in funding as it gears up for the public debut of its service.
The capital injection comes from VC firm Pentech, high-profile Silicon Valley investor Tim Draper, prolific European angel investor and Spotify board member Klaus Hommels and Daniel Aegerter, the Swiss chairman of Armada Investment Group.
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Nutmeg is an online investment management tool, regulated by the FSA (and ‘endorsed by the UKTI’), that will enable people to align their savings and investments with their goals in life.
Users will be able to create diverse portfolios with a sum as low as £1,000 (or monthly contributions of £100) and move, top up or withdraw their money whenever they choose. Nutmeg charges an annual management fee of 1 percent (including VAT) or less, depending how actively people use and share the service.
In a statement, Nutmeg CEO Nick Hungerford says he was frustrated with the lack of transparency in the financial world and its inability to interact online:
“I started Nutmeg because there is a huge need for trustworthy and straightforward savings and investment management,” said 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”.
Nutmeg is currently accepting founding members who will be able to begin investing when the service opens to the public later this summer.