When you think of investing, the first thought may be that you will need to put in a considerable amount of money if you really want to get anywhere. But British fintech startup Moneybox, which is due to launch during this quarter, takes a different view and is preparing to roll-out a platform that will offer inexperienced investors (particularly millennials) the ability to build wealth out of very small amounts of money.
The idea behind Moneybox is that users will invest their “digital spare change”, sometimes not even more than 1 pound, on a one-off or recurring-basis into a stocks and shares ISA, and then follow that up by selecting from a set of investment options. Like other investment platforms, Moneybox has opted for business-model that includes taking a 1 pound monthly-fee, as well as 0.45% of the user’s investments per year, with the charges calculated daily.
For the time being, Moneybox only serves users based in the United Kingdom. Although the startup has not yet formally launched, they already claim nearly 1,000 beta-testers.
It is not often that we comes across startups that obtain millions of dollars in backing before they even launch, but in this case, the company has already pulled in a pre-launch $3 million from Samos Investments, which previously backed online-sportsbook Betfair and online-supermarket Ocado, as well as a group of high-profile, but undisclosed angels. With this seed funding, the first that they have obtained, the startup intends to build its team out to about 20 people, as well as continue to develop their app before going live. The company has further announced that Daniel Godfrey, former Chief Executive of The Investment Association (IA), which is the representative body for the United Kingdom’s investment-management sector, is joining Moneybox as an advisor, particularly as they navigate the regulatory-authorization and product-design phases.