Shares, an app backed by notable investors Peter Thiel and Serena Williams, has ceased its UK operations.
- The app, which launched in the UK in 2022, completed a $40m funding round to expand its presence.
- Despite the capital injection, Shares reported an increase in losses to £16.1 million in 2023.
- The company has pivoted its focus to the French and EU markets, withdrawing from the UK.
- Many investors were new, young users who saw potential despite market volatility.
Shares, an investment app supported by prominent figures like Facebook investor Peter Thiel and tennis icon Serena Williams, has announced its decision to close its operations in the United Kingdom. The app had initially aimed to revolutionise access to investment by securing a significant $40 million funding round in 2022.
Despite this substantial backing, financial disclosures have revealed a troubling 23% increase in losses, amounting to £16.1 million in the previous year. This decision comes after analysing the company’s financial trajectory and market performance.
The company had notably reduced its workforce from 43 to 31 full-time employees, reflecting a shift in operational strategy. Shares declared it would cease its UK activities by the end of August 2024, choosing instead to concentrate on opportunities within the French and EU markets.
Funds from the 2022 investment round were expected to fuel expansion both in the UK and across Europe. However, the changing financial landscape prompted a reassessment of strategic priorities. Management conveyed to its employees that the decision was made to conclude business operations on a solvent basis.
While the closure marks a setback, co-founder Benjamin Chemla highlighted that much of the app’s user base comprised young, novice investors. He noted their enthusiasm towards market volatility, which they perceived as an opportunity rather than a deterrent.
The cessation of Shares’ UK operations underscores the challenges faced by investment apps in maintaining financial viability amidst market shifts.
