Belong: A New Era in Wealth-Building for Millennials
In an exciting development for the financial technology landscape, Belong, a pioneering wealth-building platform, has officially launched after securing an impressive €3.4 million in pre-seed funding. This remarkable achievement marks the largest pre-seed round ever raised by female founders in Europe, setting a new benchmark for women-led startups in the fintech sector. Founded in 2023 by former investment banker Avion Gray and behavioral economist Samantha Rosenberg, Belong aims to democratize wealth-building opportunities, making them accessible to a broader demographic, particularly professionally-employed millennials.
The Vision Behind Belong
The inception of Belong was facilitated by a fortuitous introduction between Avion and Samantha by Nick Hungerford, a notable British entrepreneur and the founder of Nutmeg, Europe’s first regulated robo-advisor. Nick, who tragically passed away in July 2023, was not only an advisor but also a mentor to the founders, sharing their vision of democratizing wealth-building and empowering a new generation of investors. His legacy continues to inspire the mission of Belong.
A Strong Backing
Belong’s funding round has attracted significant attention from various investors, including Octopus Ventures, Viola Fintech, Connect Ventures, Portage Ventures, and January Ventures. The platform has also garnered support from prominent fintech angel investors such as Ricky Knox and Gautham Radhakrishnan, alongside Nutmeg co-founder William Todd, leading UK economist John Kay, and tech industry expert Edwina Johnson. This robust backing underscores the confidence investors have in Belong’s innovative approach to wealth-building.
Addressing Millennial Challenges
Avion Gray, Co-Founder and CEO of Belong, emphasizes the dual challenges millennials face in building long-term wealth: the need for both time and money. “We need two things in order to build long-term wealth – time and money, but we rarely have both of these elements concurrently,” she explains. Many millennials struggle to secure mortgages, lack confidence in investing, or feel they don’t have enough capital to make a meaningful investment. Belong aims to change this narrative by providing tools and resources that empower millennials to take control of their financial futures.
Innovative Features of Belong
Operating initially in stealth mode, Belong has introduced a groundbreaking feature: the Boost loan. This optional loan allows customers to scale up their long-term investments in equities by providing access to additional funds at a low interest rate. By enabling users to invest more upfront, the Boost loan magnifies the effects of compounding over time. Customers can repay the loan in manageable monthly installments, allowing their investments to continue growing without interruption.
Historically, leveraging borrowed capital to enhance financial outcomes has been a privilege reserved for wealthier investors. However, with a minimum investment of just £1,000, Belong is making this strategy accessible to a wider audience. The early response from beta customers has been overwhelmingly positive, with 84% opting for the Boost loan and achieving 100% retention and on-time repayments after 15 months.
The Financial Landscape for Millennials
Millennials are facing unique financial challenges, being the first generation in history to be worse off than their parents. Despite comprising 22% of the population, they own less than 5% of the stock market. However, Belong estimates that individuals aged 18 to 44 in the UK have access to approximately £300 billion in cash savings. Unfortunately, much of this capital is sitting idle in low-interest savings accounts or cash ISAs, failing to work hard enough for their owners.
Avion Gray highlights the long-term potential of stock market investments, stating, “Historically, despite daily movements, the stock market has shown an upward trajectory over the long term – to the tune of 10%+ per year.” This makes the Boost loan an attractive option for those with excess cash and a steady income, encouraging them to invest for the future.
The Founders’ Backgrounds
Avion Gray, originally from Trinidad, has a strong academic background in finance, having studied at Howard University and completed her MBA at Stanford. Her previous experience includes a significant role as Head of Product & Commercialization at Clover, where she played a pivotal role in the company’s expansion in the US and Europe.
Samantha Rosenberg, raised in South Africa, specializes in behavioral finance and has worked with financial institutions across Africa and Europe to promote better long-term financial decision-making. She also holds an MBA from London Business School. Together, their complementary expertise positions Belong as a formidable player in the fintech space.
Changing Mindsets Around Wealth
Samantha Rosenberg points out a critical issue: “The excess money millennials keep in savings accounts or cash ISAs is simply not working hard enough for us.” She emphasizes the importance of overcoming present bias—the tendency to prioritize immediate gratification over future benefits. By addressing this mindset, Belong aims to encourage millennials to invest during their primary wealth-building years, rather than letting their savings stagnate.
Investor Confidence
Zihao Xu, Fintech Partner at Octopus Ventures, expresses enthusiasm for Belong’s mission, stating, “We are proud to be on this journey with Belong and look forward to supporting the company in its quest to be a true pioneer in long-term wealth-building.” The shared vision and complementary skills of Avion and Samantha position them well to help more individuals embark on a path toward a better financial future.
Belong is not just a platform; it represents a movement towards financial empowerment for millennials, breaking down barriers and creating opportunities for wealth-building that were once reserved for the privileged few.