Carphone Warehouse founder joins VCs in backing fintech venture

Personal wealth manager has raised $32 million of institutional capital two years after launching in the UK. has now raised $50 million (£30 million) from investors following its latest, and largest, growth capital transaction.

The business, which provides a digital wealth manager for personal investors, has 35,000 users and saw customer acquisition during the first three months of 2012 grow by 350 per cent.

Carphone Warehouse founder Charles Dunstone is among the investors contributing to the new funding round, alongside venture capital firm Balderton Capital and asset management firm Schroders.

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With funds in the bank, will begin a programme of further customer acquisition and product development, the business says.

Founder and CEO of Nick Hungerford says that the backing his company is receiving shows what can happen if the customer is put at the centre of the operation.

‘We believe our digital model epitomises the future of investment management,’ he adds. ‘We’ve built an award-winning service from the ground up, one that delivers brilliant portfolio management at an incredibly low cost, in a way that is secure, transparent and above all convenient for the customer.’

Alongside Hungerford, who set up after a career in blue chip wealth management, the business also been built by William Todd, a financial services and derivatives exchanges specialist.

Venture capital backer Balderton has previously backed financial technology companies such as ZOPA and Betfair and recently raised a new $305 million fund for backing European entrepreneurs in Series A rounds.

In addition, the business has the backing of economist John Kay and Todd Ruppert, founder and CEO of RTR International. Alongside them, backers also include Tim Draper, an early investor in Skype and Hotmail and Klaus Hommels, a board member at Spotify.

Massimo Tosato, executive vice chairman of fellow investor Schroders, says. ‘For over 200 years, Schroders has been at the forefront of innovation and this financial investment in an innovative and rapidly growing online wealth management business will allow us to engage in the digital changes that are influencing the asset management industry for years to come.’

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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