Prosper raises £3.2m angel round to build the Wise of Wealth-Tech

Founded by Nick Perrett of digital bank Tandem, Ricky Knox of Tandem and Azimo, and Phil Bungey of Nutmeg, new wealth-tech platform Prosper plans to revolutionise how we save and invest.

Like other fintechs have done in currency exchange and banking, Prosper is building a customer champion business, on a mission to maximise their members’ long-term wealth. It will do that by launching with the highest interest rates on cash, offering zero cost index funds* from major asset managers, and later opening access to private market investments that offer higher potential returns.

Founders of Monzo, Capital One, World First, Tandem, Azimo, Embark, Comply Advantage, and Connect, MMC and Portfolio Ventures all contributed to Prosper’s £3.2m angel round, backing the company to shake up the way people manage their wealth.

“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,” said Nick Perrett, founder and CEO of Prosper.

“It’s probably the largest bill you have, but never see. Our mission is to change that for millions of people worldwide.”

“We also know just how much interest customers fail to get on their cash – we want to change that by making it easier to just keep cash on top rates. We are excited to give more back to our members, helping them get more of the life they want.”

And it’s not just about costs, as Ricky Knox, Prosper’s co-founder and Chairman notes, it’s about access to the best returns, net of those charges. Prosper believes the days of the mutual fund supermarket are over.

“The investment universe has moved on,” said Ricky. “There are less than half the number of public companies than there were 30 years ago, and over 85% of all US companies with more than $100m in revenue are not listed on the stock market. And yet the investment products we put money into haven’t changed!”

“Unless you’re ultra wealthy, and have enough money to essentially buy access, you’re at a disadvantage and can’t access these potentially higher-yielding private investment opportunities. We want to give our members that access, levelling the playing field for the everyday consumer.”

Early investors in Prosper’s vision include Tom Blomfield, founder of Monzo which now has over £6bn in deposits and 7.4 million customers; and Matt Cooper, cofounder of Capital One Bank, one of the world’s first true fintech business which he helped grow to 2 million customers and £275 million in revenue.

Prosper’s founders’ prior experience lends itself to the challenge of building a wealth-tech:

Nick Perrett and Ricky Knox, built digital bank Tandem together, now with over £2bn in assets under management, one of the leading purpose-driven fintechs in the UK, focused on green lending.

Phil Bungey, former COO of Nutmeg, one of the most successful digital challengers in the British wealth management market, building a customer base of over 140,000 investors, and amassing over £3.5 billion of assets under management (AUM) before being bought by JP Morgan for £700 million in 2021.

With around 1 billion high net worth and mass-affluent investors worldwide getting a raw deal on the money they’ve earned, Prosper will be on their side, a consumer champion business, helping realise the full potential of the largest financial asset they have.

Prosper is now inviting the crowdfunding community to participate, offering Crowdcube investors a unique reward of lifetime zero-fees on investments made during the launch period, in addition to equity ownership in the company.

When you invest your capital is at risk. ISA/SIPP eligibility and tax rules apply. Tax relief depends on your personal circumstances and current rules can change.

Alternative and Private Markets disclosure. Don’t invest unless you’re prepared to lose all your money invested. This is a high-risk investment. You could lose all the money you invest and are unlikely to be protected if something goes wrong. Take 2 min to learn more.

* for founding members (initial offer terms apply)