News Savings And Investment

Nutmeg smashes crowdfund target, soaring past £2.5m in opening hours

After raising £45m in January from Goldman Sachs and Convoy, Nutmeg's follow-on round is set to beat expectations.

a man wearing a suit and tie

Martin Stead/Nutmeg.

After raising £45m in January from Convoy and Goldman Sachs,Nutmeg yesterday smashed its follow-on crowdfunding round by 250% in a matter of hours.

Initially intended as a £1m add-on to its Series E, Nutmeg has already reached £2.65m at the time of publication and with 28 days left in on its Crowdcube round.

Nutmeg’s CEO Martin Stead called the response “overwhelming”, adding:

“Our customers are our greatest advocates and we wanted to give them an opportunity to invest in, as well as with, a business they’ve helped to make a success.”

Nutmeg’s crowdfund is priced in line with its Series E round and places crowd investors in the same preference share class and Convoy, Goldman and its other institutional investors.

While the original plan for the crowdfund was to sell 1% of the company’s ownership—valuing the business at £251m fully diluted, pre-money–Nutmeg said it is working with existing shareholders to increase the stake available for additional investors to take part.

As well as equity, Nutmeg is also offering Crowdcube investors perks like VIP support (for those investing £25,000+) and lower fees of 0.3% (for those investing £50,000+).

“All of our shareholders – institutional and crowd – have my commitment that everyone at Nutmeg HQ will work tirelessly to deliver shareholder value,” said Stead.

Nutmeg is just the latest example of fintech and crowdfunding going hand-in-hand.

Earlier this year Freetrade took down Crowdcube’s website with overwhelming demand for its £2m crowdfund (being followed-up next week with an additional £1m round).

Monzo likewise has raised several oversubscribed rounds of crowdfunding.

Companies In This Article

logo, company name
logo, company name
logo, company name

People In This Article

More Like This