What is InvestEngine? A look at its growth, model, and financials

A friend recently mentioned that she was investing using InvestEngine and asked whether I think it is a good platform. I had heard of it but was not aware of any detail so I said I would research it. I thought other investors would be interested in what I found.

What is InvestEngine?

Founded in late 2016 and launched to consumers in May 2019, InvestEngine (UK) Limited is an FCA-regulated online investment platform that focuses on exchange-traded funds (ETFs).

Unlike legacy brokers (such as Hargreaves Lansdown or AJ Bell) or speculative trading apps (like Freetrade or Robinhood), InvestEngine does not offer single-company equities, investment trusts, open-ended funds (OEICs/unit trusts), or derivatives. It is intentionally built around passive, long-term asset allocation using index-tracking ETFs.

The platform provides Individual Savings Accounts (ISAs), Self-Invested Personal Pensions (SIPPs), general investment accounts (GIAs), and dedicated business accounts, the latter for UK limited companies seeking yield on corporate treasury reserves.

Core user features include:

• Zero platform fees for DIY investors: the only underlying costs are the ETF expense ratios (TER) and market buy/sell spreads.
• Fractional ETF trading: ensuring regular monthly contributions are fully invested.
• Automated portfolio management: One-click rebalancing and target-weight auto-investing of new deposits.
• Discretionary managed portfolios: charged at an annual fee of 0.25%.

Ownership, founders, and capital structure

InvestEngine is an unlisted, venture- and crowd-backed fintech operating through two main entities: the regulated operating business, InvestEngine (UK) Limited, and its parent, InvestEngine (Holdings) Limited.

Founders and Leadership:

• Simon Crookall (Co-founder): Serial entrepreneur best known as the co-founder of Gumtree (acquired by eBay in 2005). He brings family ties to traditional wealth management via Isle of Man broker Ramsey Crookall.
• Andrey Dobrynin (Co-founder & Managing Director): The technical and operational head overseeing product architecture.
• Joanna Crookall: CEO of Ramsey Crookall, who was involved in early operations and alignment with standard market custody practices.

Shareholders:

• The founders and executive management hold significant equity and control.
• Growth and venture capital backing includes Tobin Capital.
• Thousands of retail investors hold minority equity stakes via Crowdcube nominee vehicles following multiple crowdfunding campaigns.

Customer growth, AUM, and average balances

InvestEngine has scaled rapidly over the last five years, moving from a niche robo-adviser into a substantial ETF custodian:

The average balance per client has risen from around £3,200 to more than £14,500. This reflects both the natural compounding and recurring contributions of early adopters, along with transfers of existing ISAs and corporate cash holdings.

Financial performance: P&L, cash burn and valuation

Like many high-growth fintechs, InvestEngine’s commercial results reflect a classic “land-and-expand” freemium approach: customer acquisition and asset gathering come first, while profitability remains a longer-term milestone.

1. Profit & Loss Summary

2. How does it make money?

With DIY custody and trading set at £0, InvestEngine relies on a few key income streams:

• Discretionary Management: A 0.25% annual management fee on managed portfolios.
• Treasury / Net Interest Margin: Interest earned on uninvested client and corporate cash held with custodians.
• SIPP and Business Account Charges: Administration fees on pension wrappers and corporate cash-management tools.

This generates roughly £25 to £35 of annual gross revenue per customer, equivalent to an effective platform take of roughly 0.20% to 0.25% across total AUM (well below the 0.35% to 0.45% enjoyed by full-service investment platforms).

3. Cash burn and funding runway

Operating cash outflow has trended upwards as the business scales, growing from £4.1m in FY23 to £8.5m–£9.0m in FY25. The lion’s share of costs is driven by technology infrastructure, engineering headcount, marketing, and regulatory capital requirements (MIFIDPRU reserves).

These operating deficits have been covered by regular equity allotments from the parent company and existing backers, with paid-in share capital at the operating level rising past £50m. The backing of wealthy founders (notably Simon Crookall) provides capital depth while the platform targets self-sustaining cash flows.

4. Historical and current valuation

• June 2022: ~£15.0m–£16.5m pre-money valuation (Crowdcube).
• April 2023: £27.61m pre-money valuation at £2.66 per share (Crowdcube).
• Current Indicative Value: While unlisted, sector transaction multiples (1.5% to 3.5% of AUA for retail platforms, adjusted for ongoing burn) alongside subsequent private capital allotments place an implied valuation in the £40m to £60m range.

The Retail Investor’s Verdict

For retail investors and ShareSoc members evaluating InvestEngine, the business presents clear strengths alongside points to monitor:

The Good:

• Low cost for ETF users: For straightforward buy-and-hold ETF portfolios, it offers one of the cheapest and most modern user experiences in the UK.
• Strong asset momentum: Surpassing £1.3bn+ in AUM demonstrates product-market fit and investor trust.
• FCA safeguards: As an FCA-regulated firm, client assets and cash are held in segregated trust accounts with established custodian institutions, backed by standard FSCS protections (up to £85,000 per eligible claimant) against broker insolvency.

The Challenges:

• Freemium economics: Zero-fee models depend heavily on achieving significant scale. Analysts estimate the business may require £10bn to £15bn in AUM, or the addition of new monetised features, to achieve sustainable operating breakeven.
• Limited product range: If you invest in individual UK equities, investment trusts, or gilts, InvestEngine cannot serve as an all-in-one platform.
• Long-term pricing risk: If interest margins compress, or market growth slows, the platform could eventually follow the path of peers by introducing modest subscription or custody charges.

InvestEngine is a fast-growing, well-designed fintech that provides genuine cost savings for ETF investors, backed by patient founder capital, even as it works through the typical profitability challenges of early-stage platform finance.

Cliff Weight, Member, Chair of ShareSoc’s Education Committee and member of ShareSoc’s Policy & Campaigns Committee

This article reflects the opinions of its author and not necessarily those of ShareSoc.