InvestEngine valued at nearly £30 million

InvestEngine's latest crowdfunding round, which was managed by Crowdcube and easily raised £1.94 million, has a target of £1.25 million.。

This is the company's second crowdfunding, raising £1.3m in 2022, when it was valued at £15.6m.。

The latest round of funding, with a pre-investment valuation of £27.6m, was oversubscribed within 24 hours of the new issue, with a total of 1,127 investors seizing the opportunity to invest.。

InvestEngine's growth path

InvestEngine wants to be the distribution platform of choice for the world's leading ETF provider。The company intends to match investors with ETFs through a variety of savings and investment products, including workplace pensions, SIPP or self-invested personal pensions and ISA。

However, InvestEngine is a start-up company with assets under management of just 1.£700m, although its active customer base has been growing and now totals 25,000, about four times what it was at the time of the first round of crowdfunding.。

Can InvestEngine survive on crowdfunding and management fees？

The company provides commission-free autonomous investment or custody services with an annual fee of only zero, in addition to market spreads and ETF management fees..25%。

InvestEngine calculates that these expenses represent, on average, 0% of the portfolio per year.23% or so, which means investors are expected to pay 0 for managed portfolio services.About 48% of the cost。

This level of fees is much cheaper for a client with a portfolio of £20,000 InvestEngine than competitors such as Hargreaves Lansdown, Nutmeg, Wealthify and Moneyfarm。

InvestEngine's goals are high, and its ambitions have resonated with crowdfunding investors and Good Money Guide users, whose votes helped the company win the Best ETF Investment Platform category at a recent awards ceremony.。

The company exceeded its crowdfunding target within 24 hours, a positive sign。

However, it remains to be seen whether £2m will be enough for the company to grow its business fast enough to attract the attention of venture capitalists and other larger investors.。

For financial services companies, to stand out and continue to do bigger and better, reaching the standard scale quickly is the key。