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The Development Bank of Wales funds businesses that they think will benefit Wales and its people. The ones that will create ripples of growth- those that are more than a good business model or a great idea.

Investment of £520,000 Brings Fintech Start-Up to Cardiff

Investment and pension provider Prosper is establishing a back office at Capital Quarter in Cardiff following an investment of £520,000 from the Development Bank of Wales and a syndicate of 11 business angels.

Prosper was established in 2021 by Nick Perrett and Ricky Knox who previously worked together to build Tandem Bank, a major employer in Wales with 250 staff. They are joined by Phil Bungey who was previously Chief Operating Officer at wealth-tech firm Nutmeg.

With the backing of the founders of Monzo, Capital One and Admiral, Prosper has now raised pre-seed investment of over £4 million. Lead investor Simon Bell, the founder of fintech and insurtech angel group Rebel Syndicates leads the syndicate of 11 business angels investing £270,000 which was match funded with  £250,000 from the Wales Angel Co-investment Fund. Hugh James acted for the angel syndicate and Wales Angel Co-Investment Fund. Independent UK law firm Burges Salmon advised Prosper.

Prosper provides pensions, investments and savings. Founding members benefit from zero fee access to 30 index funds from the world’s leading asset managers, zero platform fees and zero transaction fees. In the future, Prosper will charge members a fair platform fee and low, fair and transparent fees for any other investment products that the company thinks represent great value.

Ricky Knox, Chairman of Prosper said:

“It’s great that Prosper is supported by Angels Invest Wales and Welsh angels in our latest funding. Receiving support from David Stevens, the man who created Welsh unicorn Admiral, is a particular vote of confidence in Prosper’s mission. We’re excited to grow our base in Wales over time, building on the success we had in the region with our previous business Tandem with the creation of up to 100 jobs.”

Simon Bell, lead investor said:

“This is a team of experienced fintech entrepreneurs with a proven track record in setting-up and scaling banking businesses. It’s a real coup for Wales given that Tandem Bank is now one of the leading green banks in the UK. ”

Tom Preene is Operations Manager for Angels Invest Wales. He said:

“This is a great opportunity for the Development Bank to back a highly experienced syndicate of business angels in helping to drive the growth of Prosper in Wales. Their knowledge and investment combined with our match-funding is what will drive the growth of this promising business; creating jobs and leveraging value for the Welsh economy.”

The £8 million Wales Angel Co-investment Fund is a passive fund which aims to encourage more active angel investment. Managed by the Development Bank of Wales, the five year co-investment fund participates in syndicated investment rounds by co-investing loans and equity up to £250,000 alongside angel syndicates and a lead investor. Angel Invest Wales actively co-ordinates this activity on behalf of the Development Bank of Wales.

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