Former Tandem alumni Ricky Knox and Nick Perrett, along with Nutmeg COO Phil Bungey, have launched a new wealthtech venture called Prosper, securing £3.2 million in pre-seed funding from a variety of fintech founders.
Prosper aims to replicate the success of Wise in the foreign currency exchange space by significantly lowering the fees typically charged by wealth managers, while providing high-interest returns on cash balances. The company promises to offer the “highest interest rates” on cash holdings and zero-cost index funds from leading asset managers, with plans to enable access to private market investments that could yield higher returns.
CEO Nick Perrett highlights a common issue, stating, “Most people are totally unaware of what they are paying to have their money managed, nor the fact that these costs can literally cut their future wealth in half. It’s probably the largest bill you have, but never see. Our mission is to change that for millions of people worldwide.”
Co-founder and Chairman Ricky Knox adds that Prosper is not only focused on reducing costs but also on enhancing access to optimal returns after fees. He argues that the traditional mutual fund model is becoming obsolete.
“The investment universe has moved on,” Knox explains. “There are less than half the number of public companies than there were 30 years ago, and over 85% of all US companies with more than $100 million in revenue are not listed on the stock market. Yet the investment products we currently utilize haven’t evolved.”
He emphasizes that unless individuals are ultra-wealthy and can afford to “buy access,” they often miss out on potentially lucrative private investment opportunities. Prosper seeks to democratize access to these higher-yielding options, providing a level playing field for everyday consumers.
The £3.2 million angel round saw participation from founders of notable companies such as Monzo, Capital One, World First, Tandem, Azimo, Embark, Comply Advantage, and others, including early backers like Monzo co-founder Tom Blomfield and Matt Cooper, co-founder of Capital One Bank. With initial funding secured, Prosper is now planning to raise additional capital through a crowdfunding campaign on Crowdcube.