UK WealthTech Firm Prosper Hits a £800,000 Crowdcube Target Ahead of Public Launch
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Prosper, a WealthTech company headquartered in the UK managed to hit its £800,000 Crowdcube target even before launching to the public. The raise on Crowdcube remains open for overfunding.
Prosper Sees Overwhelming Support
Prosper is a company founded by Tandem and Nutmeg — emerging as the brainchild of Tandem veterans Ricky Knox and Nick Perrett and Nutmeg’s COO, Phil Bungey.
Initially, the company saw massive support in pre-seed backing from a number of fintech founders, raising £3.2 million. Some of the most notable participants included Capital One’s Matt Cooper and Monzo’s Tom Blomfield. Before that, the firm raised another £1 million during the crowdfunding round held in December 2023.
https://x.com/pressat/status/1797583882717409461
Prosper has seen overwhelming support while trying to emulate the likes of Wise in foreign currency exchange. It intends to do it by undercutting the fees levied by wealth managers and offering high-interest-bearing returns on balances.
While the firm opened for founding members only a few months ago, it already offers general investment accounts, as well as ISAs and SIPPs.
Commenting on the firm’s success in these early days, Perrett stated that the founders had 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,” he added.
What Makes Prosper So Attractive To Investors?
The news of the firm’s success came around the same time as Prosper’s launch of savings accounts, which opened up a massive choice of hundreds of high-interest-rate options, coupled with easy access to investing, fixed rates, and notice accounts from a variety of banks.
The company also saw one of the highest interest rates available in the UK, with 5.78% — a market-beating rate for a 365-day notice tracker.
Commenting on the matter further, Perrett said that bringing the customers’ cash savings and their pensions together in one place can help the users understand what their money is doing. He explained that Prosper’s Savings Account can allow customers to access new interest rates on cash all the time, all from within the app.
Users can also easily move their cash to take advantage of these rates. In other words, it was all a part of the company’s core mission, as it wanted to ensure that people could maximize their potential wealth.
“We don’t charge for opening or managing your cash accounts. Instead, we take a small percentage amount from the bank account provider,” he said.
