London-based Sidekick, a wealth management platform, has raised £8.5 million in funding split into £4.5 million seed funding and £4 million debt facility.
The seed round was co-led by Pact VC and TheVentureCity, with participation from 1818, MS&AD, Blackwood, Octopus Ventures (which invested in Harbiz and Flock), Seedcamp (which backed Visibly and Mimo), and Semantic Ventures. Columbia Lake Partners provided the debt financing.
Funds utilisation
The seed investment will fuel Sidekick’s client expansion, enable further product development, and support licensing ambitions in Europe.
Expanding its product lineup, Sidekick is touted to be the only wealth management service of its type in the UK to offer a Portfolio Line of Credit, a lombard lending product designed to help investors stay invested over the long term while still having access to liquidity when needed.
Monik Pham, Founding Partner at Pact VC, commented, “Sidekick addresses wealth disparity and the limited options in the market, which often restrict investors to extreme ends of the spectrum: solely passive investing or active speculating. By catering to an underserved segment with innovative financial products and inclusive wealth-creation opportunities, Sidekick is changing private wealth for the new generation.”
Álvaro Sanz Sieteiglesias, Partner at TheVentureCity, added, “Matt, Pete, and the whole Sidekick team impressed us with their long-term vision to enable more people to take charge of their wealth creation. If you remove the technological and distribution barriers everyone can better build generational wealth in the long term.”
Tiffine Wang, Partner at MS&AD Ventures, added, “Our focus is on investing in category leaders globally. We have been very impressed with Sidekick Money, led by Matt Ford. With their strong focus on regulatory compliance and cutting-edge technology, which provides a strong foundation for long-term success, they are poised to revolutionise private wealth management in Europe.”
Abbas Kazmi of BlackWood Ventures commented, “We are delighted to be joining Sidekick on their mission to democratise access to wealth-building opportunities that previously were only open to the most affluent in society. The sheer scale of their vision and ambition, alongside their important core values of accessibility, transparency, and affordability, truly excites us. We look forward to being their supportive sidekicks on this journey towards empowering people to build better financial futures and believe that they have the right team in place to deliver on this promise.”
What challenge does it resolve?
Reportedly, households in higher wealth deciles can proportionally hold much more of their money in higher-returning assets, exacerbating an ever-increasing wealth divide. Part of this is due to differing liquidity requirements. For instance, lower-income households often hold more cash to protect against unexpected expenses.
Still, a compounding factor is a lack of access to some of the higher-returns assets and a lack of expertise to explain and help navigate them. Beyond the reach of retail investors, such services have traditionally been reserved for the ultra-wealthy.
This is where Sidekick comes into the picture. It is a financial services provider for investors who have graduated beyond dabbling in stock picking and robo-advisory and are actively seeking solutions to grow their wealth more meaningfully.
One-of-its-kind wealth management service
Founded by Matt Ford and Pete Townsend, FCA-regulated Sidekick offers a modern approach to wealth management for those looking to do more with their money and benefit from the financial advantages typically reserved for the ultra-wealthy.
It targets founders, tech workers, lawyers, and other hard-working professionals who know they should be doing more with their money but are uncertain of the next step and distrustful of traditional financial advisors who often don’t understand their situation.
The company provides financial strategies designed to maximise returns and navigate market complexities. Users can access exclusive investment opportunities, unique liquidity options, and alternative asset classes, unlocking new avenues for wealth accumulation. It is a partner for financial success, delivering expertise, transparency, and innovation every step of the way.
Investors can borrow up to 40% of the value of their portfolio, subject to assessment, without needing to bear the brunt of a forced sale. The credit facility is backed by the investor’s portfolio, which helps Sidekick provide larger loan amounts, lower fees, and greater flexibility. The product is designed to enable more long-term investment horizons and can’t be used for investing.
New savings feature
Sidekick recently launched its new instant-access savings account, offering a competitive variable interest rate of 4.34% annual equivalent rate (AER) on cash savings. The account gives customers an additional 1% bonus on their first £20,000 for investing a minimum of £1,000 in Sidekick’s flagship investment portfolio over 12 months, bringing the total interest rate to 5.34%, currently the highest in the market.
Matthew Ford, Co-Founder and CEO of Sidekick, added, “We’re looking to address the growing inequity of wealth creation and let the money of hard-working entrepreneurs and professionals work harder. With over a million people in our target demographic in the UK seeking support for their financial goals, the demand for innovative wealth management solutions tailored to their unique needs is undeniable. Sidekick exists to ensure that it’s not just the ultra-wealthy that have access to the tools and products needed to secure long-term financial prosperity.”
What do we think about Sidekick?
The company is revolutionising wealth management by providing innovative financial products and inclusive wealth-creation opportunities for professionals beyond traditional services. With unique offerings, Sidekick aims to democratise access to wealth-building tools, addressing the growing wealth disparity and empowering a new generation of investors.
