What the business is
A UK fintech using open banking to lend renters their deposit, paid back monthly or by a fee when the old deposit returns
The bet
Renters will pay a small fee for a loan that finances their new deposit when their old deposit has not yet been returned, financed by debt
Starting capital
About £22M: roughly £2M equity and £20M debt to fund deposits, from Fasanara Capital, Passion Capital, TrueSight Ventures and the Future Fund
How it started
Fronted was founded in 2019 by Jamie Campbell (ex-Bud), Simon Vans-Colina (ex-Monzo) and Anthony Mann (ex-Apple). Its first product was a 12-month loan covering a renter's deposit, repaid monthly with interest.
What happened
It pivoted to what Campbell called the real pain point, the 'deposit that moves home with you': it secured the old deposit's return to Fronted, financed the new one in full and charged about £50, verified by custom APIs. It signed distribution deals with estate agent software firms and reached 40,000 rental moves a month at peak. Campbell says costs of capital went through the roof in September 2022.
How it ended up
Campbell said Fronted could not offer the product below £100 and customers would not pay that; the company shut in 2023, with Companies House showing dissolution at the end of May. At its biggest it had 12 staff, all of whom found new jobs.
What has to be true
Repeated interest rate rises lifted the cost of the debt used to fund deposits
The price needed doubled from about £50 to at least £100, and customers' price sensitivity was too high
Fronted did not reach partners with scale early enough to sell at its intended price, Campbell said
What can be applied
A consumer lender priced on thin margins can be broken by a funding-cost shock; Campbell said earlier distribution through partners with scale might have let it hold its price.
Aftermath
As of August 2023 Fronted had closed and was dissolved at Companies House at the end of May; all 12 staff had found new roles.
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