The investment will be used to fuel both growth and development as the fast-growing company establishes itself in the market.
A number of high-net worth individuals were involved in the round, including Carphone Warehouse founder Charles Dunstone.
It brings the total capital raised by the London-based company to $50m.
Nutmeg was founded in 2012 by Nick Hungerford and William Todd to transform traditional fund management.
It provides a diverse portfolio management online service to anyone with as little as £1,000 to invest.
The idea behind the company was to rid the wealth management of all the aspects that made it unpopular – lack of transparency, use of jargon, and the illusion of a personal relationship.
Discussing the investment, Hungerford commented:
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’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.
Nutmeg are just one of a number of flourishing fintech companies coming out of London.
Existing investor Tim Draper believes that of those businesses, which include Transferwise, DueDil, and Zopa, Nutmeg are “among the very best”.
It has over 35,000 registered users and customer acquisition in Q1 was 350% up on the same period last year.