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Nutmeg raises more than £3m of crowdfunding cash

Emma Lunn
Written By:
Emma Lunn

Digital wealth management firm Nutmeg smashed its crowdfunding target in just a few hours yesterday.

Investors ploughed in £2.5m in just a few hours and within 24 hours had pledged more than £3m, double Nutmeg’s £1.5m target.

The money raised means more than 1 per cent of the Nutmeg’s ownership has now been ear-marked for about 1,300 crowdfunding investors.

These investors are entitled to the same preference share class as the recent institutional funding round co-led by Goldman Sachs in January which saw it secured £45m of investment.

Crowdfunding investors who are not Nutmeg customers will have access to the round after existing clients were given early access.

Martin Stead, Nutmeg chief executive, said: “Our customers are our greatest advocates and we wanted to give them an opportunity to invest in, as well as with, a business they’ve helped to make a success.

“All of our shareholders – institutional and crowd – have my commitment that everyone at Nutmeg HQ will work tirelessly to deliver shareholder value. With their support, we’ll be able to help even more people reach their life goals with our award-winning investment strategy.”

As well as shares in Nutmeg, crowdfunding investors also receive perks. Those who pledge at least £5,000 become ‘super-users’, with a first look at new product developments and the chance to feedback about the user experience.

For £25,000, investors are also entitled to VIP customer support. Those who invest £50,000 become super users, get VIP support and also cheaper fees on their Nutmeg investments.  Investors contributing £100,000 or more join the ‘inner circle’ and, as well as the other perks, can attend a roundtable with the firm’s chief investment officer Shaun Port to discuss future investment trends and Nutmeg’s investment strategy.

Nutmeg announced its crowdfunding campaign in March and plans to raise up to £10m in total.