Sprout starts to grow with $1m pre-seed to 'level the investor playing field'

London-based startup Sprout has raised $1m pre-seed to connect “underserved” private investors to leading venture capital funds.

Founded in 2021 by private market specialists Jonny Blausten (CEO), Daniel Lehmann (chief operating officer) and PwC Raise Ventures founding member Rich Abrahams (chief investment officer), the funds will be used to scale Sprout’s platform.

The round included a mix of family offices and angel investors, including early backers of Wise, Pipe and Betway.

Aiming to “bridge the gap” between investors and VC funds, Sprout lowers the barrier to entry with a minimum investment of £5,000 for high-net-worth and ultra-high-net-worth individuals who might not have access to VC funds or might be priced out by high minimums.

“We’ve witnessed the appetite for long-term, higher upside investment classes like venture capital, and have experienced first-hand the high minimum investments and requirement to have extensive industry knowledge,” Sprout CEO Blausten said. 

“We’re helping underserved investors access high-performing VC funds, as they rightfully should.”

So far, Sprout has partnered with a diverse portfolio of VC firms on its platform, including Speedinvest, G Squared and Episode 1 Ventures, facilitating millions of pounds of investment from more than 500 investors.

Blausten said Sprout is trying to “level the playing field in the private markets”, with private investors increasingly looking to diversify their portfolios.

To Sprout, “true diversification” is a result of expanding portfolios to include private market asset classes such as venture capital.

“By the time most private investors have heard of the most exciting companies, they've already been backed by the best VCs, meaning that the opportunity to invest in them has gone,” Sprout chief investment officer Abrahams said.

“That needs to change. More people should be able to invest in top-tier venture capital funds, and Sprout is making that possible.”