An investing app, backed by notable figures like Peter Thiel and Serena Williams, has withdrawn from the UK market following mounting financial losses.
- Shares, a Soho-based startup, ended its UK operations after its losses grew to £16.1 million in 2023, worsening by 23% from the prior year.
- The app, which once secured $40 million in funding, has decided to refocus its efforts on the French and EU markets.
- The decision was made as the company experienced a reduction in its workforce, dropping from 43 to 31 employees.
- This move comes as Shares joins other celebrity-endorsed apps like Gather, which also ceased operations recently.
An investing app endorsed by high-profile figures like Peter Thiel and Serena Williams has announced its withdrawal from the UK market due to expanding financial losses. The company, known as Shares, headquartered in Soho, initiated its services in the UK in May 2022. Despite completing a successful $40 million funding round later that same year, the app has encountered formidable challenges leading to its recent decision to cease UK operations, effective August 30, 2024.
The financial ordeal was highlighted in the company’s latest accounts, which indicated losses reaching £16.1 million for the year 2023. This represents a 23% uptick from the previous year’s financial results. The company’s workforce also experienced a contraction, with full-time employees decreasing from 43 to 31 over the year.
In a statement, Shares revealed its strategic pivot towards focusing on the French and broader EU markets. This decision was communicated internally, ensuring a solvent wind-up of its UK business. The influential backing for Shares initially included the Valar Fund, spearheaded by Peter Thiel, alongside support from the Williams sisters, who also served as brand ambassadors. Serena Williams expressed her initial enthusiasm by stating, “The first time I heard about Shares I was blown away by the vision.”
The closure of Shares in the UK aligns with a broader pattern of celebrity-endorsed investment apps struggling to maintain operational viability. Earlier this year, Gather, an investment platform supported by Arsenal footballer Jorginho, similarly entered administration. The challenges faced by these startups underscore the volatility and competitiveness inherent in the modern investment app market.”
Shares’ strategic realignment signifies a broader trend in the investment app industry, where financial sustainability is becoming increasingly critical.
