Gen Z FinTech raises £2m in seed investment
FinTechInvestment
London-based FinTech Prograd has raised £2 million ($2.5 million) in seed investment to accelerate its mission to help young people understand finance.
The startup was founded by university graduates Ethan Fraenkel and Marco Logiudice to promote financial literacy for Generation Z.
High-profile angel investor Mandeep Singh, founder of marketplace Trouva, joined Deloitte Ventures, Techstars, ZAKA Ventures and AGAM in the seed investments.
It will be used to expand the team’s marketing and development capabilities, improve its digital footprint, launch an app and improve its algorithm products.
CEO Ethan Fraenkel (pictured) said: “We are delighted to have world-class investors supporting us in our journey to educate Gen-Z and help them achieve their financial goals – without financial jargon and in the most cost-effective way .
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“We believe that one of the biggest issues in consumer finance right now is the lack of personalization and financial literacy.
“There is a big link between the banks, what the customers want to do and how the two parties communicate.
“This funding is an important milestone at a time when financial support has never been more critical for young people with the current cost of living crisis and bleak economic outcomes. We want to help this generation find the best solutions for their needs.”
Officially starting operations in September 2021, Prograd joined the Techstars London accelerator where it was mentored with one-on-one mentorship from several former startup founders, assigned dedicated growth coaches and had access to capital to grow and scale.
Fraenkel and Logiudice came up with the idea for the business when they were struggling to find sustainable funding options to cover the cost of their master’s degree.
They realized how little they understood about money matters and the options available. In the end, they ended up taking personal loans at high interest rates that force them to pay back double the amount they borrowed.
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Prograd has already helped over 15,000 users improve their financial situation by explaining and connecting them with earning, saving and credit opportunities from the likes of Santander, Revolut, Starling, Fiverr and IndeedFlex.
Louise Brett, Deputy Chair of Deloitte UK and Head of UK FinTech, said: “The knowledge gap around financial literacy, particularly for younger generations, is a global problem that has profound societal implications. Prograd’s approach to this challenge provides meaningful benefits for both consumers and financial services.
We look forward to supporting Prograd in making the world a more financially inclusive place.”
Prograd uses proprietary models to match users with solutions from different providers that can help them achieve their goals, including side hustles, flexible working, savings accounts, credit cards, car financing and more.
