Mimi who is currently heavily pregnant founded Littlefund in 2018. The platform provides a new way of saving for millennials, which is designed to help them save for their children, the so called Generation Alpha and their future.
Littlefund is a platform which allows family (via the family account) and friends (via the gifter account) to start saving for multiple goals in their GenA childrens' future.
Mimi had the concept for Littlefund after having her first child and being racked with guilt at the number of unused gifts that she received when her daughter was born. Littlefund is designed so that close family and indeed friends, god parents and extended relatives are able to log in to the platform and make a monetary contribution to child’s savings account rather than giving a more traditional tangible, and often unwanted, gifts.
There is no app, which they say is because its so simple an app isn’t needed! Just log in the website and make bank transfer to nominated gift account. I don’t really buy that argument so hopefully an app will arrive sooner rather than later.
This isn’t a one-off activity. Think birthdays, christenings and graduations. There will be no more receiving socks at Christmas or a cheque/cash posted in a card (who uses cheques and who even posts cards these days?)
Recent research in the US stated that 69% of Americans biggest financial worry is not being able to provide a comfortable upbringing for their family.
Existing 529 plans which are available in the US are primarily used to save for college education with tax advantages. Unlike 529’s with a Littlefund account, there is no tax advantage, but you do have more control of your savings. You are able to contribute as much or as little as you like, make fund withdrawals at any point, and will not incur any penalties or have to conform to differing interstate regulations.
The key marketing strategy is to leverage social media with a heavy focus on the use of Instagram. But they have also gone back to good old-fashioned word-of-mouth. New parents like to talk!
To encourage further growth, they are aiming to get 10,000 users by the end of the year by offering referral awards for new investors.
Although a very simple concept, I really liked the idea of Littlefund and could see how something similar could work well in other markets market.