Shares, an investing app supported by notable investors like Serena Williams and Peter Thiel, has ceased its UK operations amidst increasing financial losses.
- Launched in May 2022, Shares concluded a $40 million funding round to further its expansion in the UK and EU markets.
- In 2023, the company reported a substantial loss of £16.1 million, marking a 23% rise compared to the previous year.
- Due to strategic refocus, Shares has decided to concentrate on the French and EU markets, terminating its UK business as of August 30th, 2024.
- Despite the shutdown, the company assures stakeholders of a solvent winding up of its UK operations.
Shares, a once-promising investing app backed by high-profile investors such as Serena Williams and Peter Thiel, has decided to withdraw its operations in the United Kingdom. This decision comes in the wake of significant financial challenges, culminating in a reported loss of £16.1 million for the year 2023—a 23% increase from the prior year.
The app, which began its UK venture in May 2022, quickly garnered attention and secured a noteworthy $40 million funding round. This capital injection was aimed at supporting the company’s ambitions for expansion across the UK and European Union markets. However, just two years later, the company has announced its plan to cease business activities in the UK, effective from the end of August 2024.
In an official statement, the company’s management expressed that, “After careful consideration, Shares has decided to focus on the French and EU markets and therefore to stop its activity in the UK as of August 30th 2024.” The decision reflects a strategic shift to concentrate resources and efforts where the company sees greater potential and stability.
The shutdown is notable as it represents a trend among sports-star-backed investment ventures, with Shares following the recent closure of Gather, another appareled investment platform. While attributing part of its strategy to the current economic environment, the company has reiterated that the winding-up process will be conducted on a fully solvent basis, reassuring stakeholders amid the cessation of its UK ventures.
Notably, Serena Williams, among the app’s ambassadors, voiced her initial excitement about Shares’ ambitions for inclusivity in investment. She remarked, “The first time I heard about Shares I was blown away by the vision. It is rare to find companies that are equally as passionate about opening up opportunities and breaking barriers to entry…” This endorsement encapsulates the initial enthusiasm surrounding the app’s launch but also highlights the challenges that ultimately led to its UK exit.
Shares’ strategic withdrawal from the UK underscores a shift towards concentrating on more favourable markets.
