Home Business NewsBusiness Moneyfarm raises £40m in Series B funding round to drive next evolution in digital advice

Moneyfarm raises £40m in Series B funding round to drive next evolution in digital advice

29th May 18 2:13 pm

Here’s what you need to know             

Moneyfarm, the digital wealth manager that brings investment advice to investors at all stages in life, today announced an investment round of £40 million, the largest funding round by a European digital wealth manager to date. The company, which launched a personal pension (SIPP) in March this year, will use the capital to fuel growth, including the launch of more personalised and innovative solutions and the expansion of the investment strategy.

The round was led by Allianz Asset Management*, the investment arm of global insurer Allianz, which first invested in Moneyfarm in September 2016. VC firm Endeavor Catalyst and Italian finance firm Fondazione di Sardegna joined as new investors, with further funding from existing backers United Ventures and Cabot Square Capital.* This investment places the company in a strong position to scale. The combination of VC and private equity funding, alongside a strategic investor that has already worked with the company, provides Moneyfarm with a powerful blend of expertise to help the company realise its mission. 

“Moneyfarm’s aim is to help individuals better manage their money and increase their wealth to reach their goals,” said Giovanni Daprà, CEO and Co-Founder of Moneyfarm. “We firmly believe that efficient investment management has to be coupled with clear investment advice to achieve the best outcome for our customers over the long term. This is where we see the real value added from digital investments,” he added.

“Over the last few years, we’ve grown rapidly to become one of the largest digital wealth managers in Europe and one of the few to be successfully operating at scale in more than one country. We now have over 27,000 active investors,” said Giovanni. “Today marks an exciting milestone for Moneyfarm as we look to expand our customer base through a focus on greater personalisation of the investment advice we give to help support and guide customers along their wealth journey.”

Moneyfarm is one of the few European digital wealth managers to provide regulated investment advice alongside a cost-efficient investment proposition, and will be exploring the expansion of the product suite in the future. The company’s assets under management has grown by over 50% to £400 million over the last nine months, all of which has been accumulated by going directly to the retail market.

When customers register with Moneyfarm they’re provided with an investor profile. When this is combined with their investment time horizon and the amount they are investing against their current wealth, the company’s algorithm recommends a portfolio that best fits their needs. Moneyfarm has always taken a hybrid approach to the entire investment journey, blending digital investment advice with human investment decision making, and consultants are available on the phone to discuss the advice and portfolio performance.

Giovanni added: “This capital will help bolster our product and investment advice offering as we explore integrating Goal-Based Investments. Adding an additional layer of personalisation means that individuals and families will be allocated portfolios that help them achieve their financial dreams, whether it’s a child’s higher-education or building a retirement nest-egg. We’re excited about incorporating more data points into the investment advice process so investments are catered to households as well as individuals’ investment needs.

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