Tumelo powers ahead with a successful $19m fundraise
Tumelo has raised $19m in a Series A round led by Treasury, the US-based Fintech venture fund run by the co-founders of Betterment, Acorns, and Say Technologies.
Further investors include Legal & General (L&G), Fidelity International Strategic Ventures (FISV), Nucleus Adventure Capital, Lance Uggla, previous CEO of IHS Markit, and Jim Wiandt, founder of ETF.com. They join Tumelo’s existing investors, including Jeremy Coller, CIO of Coller Capital and founder of the FAIRR Initiative, a collaborative investor network that raises awareness of the investment risk brought about by intensive livestock production.
Commenting on the fundraise, Georgia Stewart, CEO and co-founder of Tumelo, said: “Tumelo has transformed from a student campaign into a daring FinTech with a blossoming team. The incredible calibre of institutional and private investors who have committed to our vision and backed our growth is a testament to the strength of our mission, product, culture and execution to date. I am excited to work closely with them all to lift our product, team and achievements to the next level and bring shareholder democracy to the global financial system.”
The investment will further enhance the platform to enable more investors to exercise their shareholder rights and extend Tumelo’s outreach across the UK. It will also support Tumelo’s expansion into the US, Australia and additional market segments, following strong demand.
Jeff Cruttenden, co-founder of Acorns, Say Technologies and Partner at Treasury, said: “Tumelo initially focused efforts on the European market and is now well-poised to take advantage of the growing focus on ESG and good stewardship within the US. Broker and 401(K) platforms want to engage and empower their investors, while asset managers and issuers are seeking greater insight on ESG from their own shareholders. “
Since its inception, Tumelo has snowballed, forging strong relationships with 17 leading investment platforms and 75 fund managers in the UK.
Erik Mostenicky, Vice President at Fidelity International Strategic Ventures, said: “Tumelo’s unique value proposition, enabling retail investors to have a voice on stewardship matters of public companies, is well-timed with current market developments. Active stewardship models are transforming the industry, and large asset managers have a duty to serve as conduits of capital for good stewardship. This global trend with regulatory tailwinds is driving change across the retail investment and pension markets; Tumelo is best placed to facilitate such progress.”
Stuart Murphy, Co-Head of Defined Contribution (DC), at Legal & General Investment Management said: “This is an exciting development, not just for Tumelo and our partnership, but for our clients and scheme members, who will benefit from an enhanced product offering as Tumelo continues to innovate and grow. The DC market is moving towards ‘expression of wish’ and split or pass-through voting, so we see the evolution of the Tumelo offering as an opportunity for L&G to remain at the forefront of the industry working with Tumelo and their partners both in the UK and overseas.”
Tumelo is playing an increasingly crucial role in the industry by helping investment platforms, robo-advisors and 401(K)/pension providers to engage all investors with shareholder voting. Tumelo’s APIs and white-label software show investors which companies their money is being invested in and give them a voice on the issues that matter most to them, from CEO pay to board diversity and climate change. The vote preferences collected from investors are sent to fund managers, who control the power to create change through voting at company AGMs.
By integrating Tumelo’s solution, investment platforms strengthen investor loyalty; drive increased AUM and retention; win large workplace pension accounts where financial wellbeing is paramount; and help fund managers to better understand and act on the preferences of their underlying investors.
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- Erik Mostenicky
- Fidelity International Strategic Ventures
- Fidelity International Strategic Ventures (FISV)
- Georgia Stewart
- ihs markit
- Jeff Cruttenden
- Jim Wiandt
- Lance Uggla
- Legal & General (L&G)
- Legal & General Investment Management
- Nucleus Adventure Capital
- Stuart Murphy