Wealthify hits £1m crowdfunding target

Wealthify hits £1m crowdfunding target

Investors poured £1m into online investment service Wealthify, which the firm hopes will support its growth plans. 

The business, which launched its fundraising campaign on 12 September, has reached its target to raise £1m through crowdfunding platform Seedrs after 650 investors ploughed money into the offering.

Crowdfunding investors now share 9.3 per cent equity in the business. 

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Wealthify said it plans to use the capital raised to support the next stage of its growth strategy, which includes introducing new sales channels, and extending products and services to include pensions and other types of Isas.

Typical investment sums were between £14 and £10,000, with investors based in the UK and across mainland Europe.

Richard Theo, Wealthify chief executive, said: “The fact that over 650 investors supported this round of funding shows the public shares our confidence in our mission.”

He also said investing and saving is now a "pressing issue", particularly with interest rates at a record low and inflation set to rise sharply over the next few years.

“The public are becoming increasingly aware of the dire state UK savers are in. 

“There’s a clear need for low-cost, accessible and easy to use investment services, that can help grow people’s hard-earned cash without the cost and complexity of traditional wealth management services.” 

Dan Farrow, director of SBN Wealth Management, said Wealthify appears to be simplistic, but he questioned if £1m is enough to see them through to anywhere near break-even, adding: "Just look at how much cash Nutmeg burns through".

"It would be good to see the financials and what assets under management they have currently and what they’re aiming for, but they’re going to have to work hard.

"Unfortunately, I would bet there will be many disappointed crowdfunders in the next year or so, and if they don’t lose money, they’ll end up heavily diluted."