Fronted, a UK home lending startup established by former executives from Apple, Monzo, and Bud, is closing down due to increasing capital costs.
The rental deposit lending company secured over £20 million in a debt and equity deal led by Fasanara Capital in November, after earlier backing from Monzo co-founders during a £1 million fundraising effort in May 2021.
Founded by CEO Jamie Campbell, who previously worked at open banking firm Bud, along with Simon Vans-Colina from Monzo and Anthony Mann from Apple, Fronted aimed to provide a 12-month loan for renters lacking a deposit to purchase their chosen property. The recent funding had intended to pivot towards developing an app for renters needing to pay a second deposit before receiving their previous tenancy’s deposit back.
However, following a series of interest rate hikes aimed at curbing inflation, the startup has decided to shut down. Fronted’s website now displays a message indicating their farewell:
“After an incredible journey together, we’re saying farewell to Fronted. Thank you for being a part of our journey; your support made it all possible. – Jamie and the Fronted Team.”
In an interview with techEU, Campbell explained the challenges they faced: “The real reason behind the issue is that in September of last year, our cost of capital went through the roof, significantly impacting our ability to offer the product at a price consumers would pay.
“We knew that we had a viable product when customers were paying around £50, but the market shift forced us to offer it for over £100, and our customers simply couldn’t afford that.
“We were never able to launch the product we envisioned at the price point we aimed for.”