Nutmeg is opting to sell shares to its clients, rather than list the company on a public exchange, which would subject it to the volatility of the market. The company will be using Crowdcube as its crowdfunding platform.
“We’re pleased that we will soon be giving eligible Nutmeg customers the chance to become shareholders alongside our existing investors like Convoy, Goldman Sachs and Balderton Capital, among others,” the company announced on its website. Customers who hold a Nutmeg account on May 15 will get early access to participate in the crowdfunding round and those who sign up on Crowdcube will receive updates as soon as it goes live (the timing of the launch is currently undisclosed). The company plans to use the funds to fuel international expansion.
On its website announcing the offer, Nutmeg reminds potential participants that purchasing the shares is “high-risk” and “isn’t for the short term.” The company reinforced the non-traditional nature of the investment, saying that it “isn’t listed on any stock exchange, and you won’t be able to sell your shares until the business achieves an ‘exit’, such as being sold to another company or floating on a stock exchange.”
Since it was founded in 2011, Nutmeg has raised $148 million from 13 investors, including Convoy, Goldman Sachs, and Balderton Capital. The company currently manages $2 billion (£1.5 billion) in funds for its 65,000 clients in the U.K.
Nutmeg showcased its digital investment management at FinovateEurope 2012 in London. Last year, the company was featured on Fidor Bank’s digital marketplace as an inaugural partner. Co-founded by Nick Hungerford and William Todd, Nutmeg appointed Martin Stead as CEO in 2015.