PE Tech Report


Like this article?

Sign up to our free newsletter

MoneyFarm secures EUR16m financing from Cabot Square

Robo-adviser MoneyFarm has raised EUR16 million in financing from Cabot Square Capital as it prepares to launch in the UK market.

MoneyFarm uses technology to deliver high quality advisory and discretionary services at a fraction of the cost of a traditional wealth management firm.
Backed by one of Europe’s largest FinTech fundraising rounds of 2015, MoneyFarm will be able to accelerate growth to become Europe’s leading Digital Wealth Manager. According to Oliver Wyman, in the UK alone this market is expected to grow to GBP 20-30BN by 2019. 
The company in its short history has already built up a registered user base of more than 50,000 in Italy with monthly double-digit assets growth.
Paolo Galvani (pictured), Chairman and co-founder of MoneyFarm, says: “We believe that UK investors need cheaper and more transparent wealth management services. Their investment returns really do suffer because of the service they are currently getting.
“British consumers are very tech savvy and they are looking for a better experience across all services offered by the traditional industry and wealth management is no exception.
“Wealth management and advisory services in both the UK and Europe have typically been very expensive while delivering below market performance and poor customer service.
“We believe technology is the key in creating solutions that can achieve far better results for customers at a much cheaper cost.
“Our mission is to enable people to take control of their savings and manage them in a simple and efficient way.”
“Keeping costs down is one of the major drivers of better investment results over the long term. That’s why we decided to combine technology and process innovation with structurally low costs instruments such as ETFs.”
However, MoneyFarm explains that simplicity, transparency and efficiency are not enough – customers also want a high quality advisory service that helps them build and manage their wealth over time.
James Clark, Partner at Cabot Square Capital, says: “The excellent management team at MoneyFarm has a clear vision of how to use technology to dramatically improve the investment management industry for clients. Combining technology with a strong customer service ethic has enabled them to build lasting relationships with their customers.”
“We were particularly impressed by the depth of service MoneyFarm offers its customers, combining portfolio structuring, execution, ongoing rebalancing and advice.”
“The team has proven MoneyFarm’s appeal by building a sustainable and growing FinTech business in Italy and we are excited to help them deliver the same level of service and product to clients here in the UK.”
Paolo Gesess, Managing Partner at United Ventures says: “MoneyFarm is a great example of a highly entrepreneurial business with pan-European ambitions. With their combination of independent financial advice and highly intelligent use of technology we are looking for them to become a European leader in digital wealth management.”
As well as launching in the UK in 2016 MoneyFarm plans to continue the double-digit growth in the Italian market while positioning itself to be Europe’s leading Digital Wealth Management business.
MoneyFarm recently received regulatory approval from the UK’s FCA and is also regulated by the Bank of Italy and CONSOB.

Like this article? Sign up to our free newsletter