Moneyfarm raises £40 million in Series B funding round to drive next evolution in digital advice

Moneyfarm continues to go from strength to strength. We’re pleased to announce that we’ve secured the largest funding round by a European digital wealth manager to date. The £40 million investment will be used to further expand our vision through our advisory service — including goal based investing — products and investment proposition.

The funding round was led by Allianz Asset Management, which has increased its minority stake in Moneyfarm after first investing in us in 2016.

Allianz is one of the five largest asset managers globally and a market-leading insurer. Our technical expertise and agility aligns well with Allianz’s key digital strategic pillar.

This is recognition from established financial businesses that technology is shifting the role of financial services away from being just a utility — and that this momentum is here to stay.

“Over the last few years, we’ve grown rapidly to become one of the largest digital wealth managers in Europe and one of the few to be successfully operating at scale in more than one country. We now have over 27,000 active investors,” said Giovanni Dapra, Moneyfarm CEO and Co-Founder.

“Today marks an exciting milestone for Moneyfarm as we look to expand our customer base through a focus on greater personalisation of the investment advice we give to help support and guide customers along their wealth journey.”

Also joining the investment round were venture capitalist firm Endeavor Catalyst and Italian finance firm Fondazione di Sardegna. Further funding from existing backers include private equity firm Cabot Square Capital and initial investor United Ventures.

This combination of a strategic investor and venture capital/private equity is a unique and powerful mix for our customers. Following the launch of the Moneyfarm Pension earlier this year, we’re well placed to accelerate our growth as a financial services company through the expansion of our products and distribution.

“This capital will help bolster our product and investment advice offering as we explore integrating Goal-Based Investments. Adding an additional layer of personalisation means that individuals and families will be allocated portfolios that help them achieve their financial dreams, whether it’s a child’s higher-education or building a retirement nest-egg,” added Giovanni.

“We’re excited about incorporating more data points into the investment advice process so investments are catered to households as well as individuals’ investment needs.

Impressive track record for Moneyfarm

Since expanding into the UK in 2016, Moneyfarm has seen impressive growth. With over 27,000 active investors, assets under management has jumped by over 50% to £400 million over the last nine months.

Allianz has been attracted to the Moneyfarm business since before 2016, especially now it’s proven it can successfully scale-up its hybrid model in a different country.

Moneyfarm blends world-class technology with human expertise to make investment advice accessible to those who have been traditionally unable to invest, whether that’s because they lack the experience, are time-poor, or don’t want to pay the expensive fees of traditional financial advisors.

Moneyfarm is one of the few European digital wealth managers to provide regulated investment advice alongside low-cost ETF-based investments. When you register with Moneyfarm, we match you to an investment portfolio based on your investor profile, risk appetite and time horizon. We’re looking at expanding our suite of products in the near future.

“We can make our expertise in active investment management and risk-optimisation available to new client segments by combining it with Moneyfarm’s digital wealth management know-how,” said Thorsten Heymann, Global Head of Strategy, Allianz Global Investors. “Allianz’s investment in Moneyfarm increases our exposure to the rapidly growing market for digitally-enabled direct investment solutions.”

* Following today’s announcement, Moneyfarm have secured close to £60 million in capital

* Allianz Asset Management’s investment is subject to the regulatory approval process, which we expect to be complete by the start of Q3 2018

* FT Partners served as the exclusive strategic and financial advisor to Moneyfarm on their Series B