The investment platform “Shares,” backed by Serena Williams and Peter Thiel, has ceased its UK operations.
- Launched in May 2022, Shares raised $40 million for UK and EU expansion.
- Despite its backing, the app experienced increased financial losses, totalling £16.1 million in 2023.
- A strategic decision was made to focus on France and the EU, leading to its cessation in the UK.
- This marks another case of a star-backed investment app facing closure after initial excitement.
The UK-based investment app “Shares,” supported by prominent figures like Serena Williams and Peter Thiel, has recently announced the termination of its business activities in the UK. Launched initially in May 2022, the app had successfully concluded a $40 million funding round later that same year, suggesting promising expansion plans both within the United Kingdom and the broader European Union.
The decision to withdraw from the UK market was revealed in the company’s latest financial disclosures, which indicated a notable increase in operational losses—rising by 23% from the previous year to £16.1 million in 2023. This financial downturn can be seen as a catalyst for the company’s strategic pivot towards focusing its resources on France and other European Union markets, effective from 30 August 2024.
The app, developed with an aim to democratize investment access, counted high-profile investors and ambassadors among its ranks, including the acclaimed tennis players Serena and Venus Williams. Despite the high hopes pinned on the app, the reality of the financial losses compelled the management to rethink their strategy and prioritise a more sustainable path forward.
In a statement published on their website, Shares articulated their decision, highlighting a fully solvent wind-up of their UK operations. The app had employed 31 full-time staff members in the UK, a reduction from 43 the previous year, reflecting the company’s scaling back even prior to the announcement.
The move follows a trend seen with other celebrity-backed financial platforms meeting with commercial challenges. For instance, Shares trails on the heels of another investment app, Gather, which was backed by footballer Jorginho and also faced administration issues earlier this year. This pattern highlights the volatile nature of the investment app sector, particularly those driven by high-profile endorsements.
The closure of Shares in the UK underscores the difficulties faced by investment apps, even those with strong celebrity backing, in maintaining market viability amidst financial challenges.
