Fund manager Schroders is the latest high profile investor in online wealth manager Nutmeg.
Schroders is part of a group of high-profile backers who have invested a combined £18.9 million in the simplified discretionary service.The group also includes Carphone Warehouse founder Charles Dunstone and Icap chief executive Michael Spencer.
Schroders executive chairman Massimo Tosato will take a seat on Nutmeg’s board.
Nutmeg is aiming to transform the wealth management industry by offering access to portfolio managment services to anyone with as little as £1,000 to invest.
Since its launch in 2012 it has registered 35,000 users and customer acquisition in the first quarter of 2014 was 350% higher on the previous year.
Earlier this year Nigel Wray, the serial entrepreneur and chairman of Saracens rugby club, acquired a significant stake in Nutmeg.
The latest fund raising means the firm has attracted £30 million from investors since its launch.
'Today's announcement is hugely exciting and goes to show that if you put the customer at the centre of the business, you will prosper. We believe our digital model epitomises the future of investment management,' Hungerford said.
'We've built an award-winning service from the ground up, one that delivers brilliant portfolio management at an incredibly low cost, in a way that is secure, transparent and above all convenient for the customer.'
Tosato added: 'We are delighted to participate in funding Nutmeg’s next stage of growth. For over 200 years, Schroders has been at the forefront of innovation and this financial investment in an innovative and rapidly growing on-line wealth management business will allow us to engage in the digital changes that are influencing the asset management industry for years to come.'