Monzo backs Fronted
London-based Fronted , the rental deposit lending company, has raised more than £1 million as part of a debt and equity deal, which increased the firm’s total funds raised to £2 million. Co-founders of digital-only bank platform Monzo , Paul Rippon and Gary Dolman, who were serving as the Co-CEO and CFO at Monzo, have also invested in Fronted’s operations. Other investors include Baroness Kingsmill–former Chair at Monzo, Ville Vesterinen (founder Slush Conference) and Ling Lin (ex-product and international expansion at TransferWise.)
Founded in 2019, the company (a team of 9) offers an alternative to rent deposit, allowing tenants to pay “bite-size” payments every month. Renters can apply to use the Fronted service by linking their bank accounts to the platform and providing details of the property they wish to rent. Once Fronted runs the required checks and agrees to provide credit, the startup sends the money directly to the estate agent to be placed in the UK’s Deposit Protection Scheme. “If you are following our story, you’ll know that Fronted is going up against the deposit alternatives which use an insurance-based model to remove the cash deposit entirely, meaning customers don’t have a deposit protected in a Deposit Protection Scheme. Fronted aims to solve the same problem, but allowing a customer to pay their deposit over 12 months, not all up front.”
“Fronted’s offering is highly differentiated and equally attractive to their customers and to me as an investor. Their focus, business model and prospects are exciting and I am delighted to join Fronted’s advisory board.” – Gary Dolman, previously of Monzo Bank, and now a venture investor at Antler VC.
“Home is where the heart is and I know as a landlord and former tenant that deposits can be difficult to pull together. That real problem needs solving and the Fronted team are doing that in a caring way using interesting modern technology. I’m delighted to be an investor and be part of their journey.” – Paul Rippon, previously of Monzo Bank, and now Chairman at GBB.
