Stockspot, Australia’s leading digital investment adviser (robo-adviser) and fund manager, recently closed a $3 million dollar capital raise.
Led by Graham Tuckwell, Founder of ETF Securities, and Alium Capital an Australian growth focused fund, the latest capital raise will help strengthen Stockspot’s position as the country’s leading digital investment service.
Also participating in the round was algorithmic trading entrepreneur Danny Bhandari and existing Stockspot shareholders including Toby and Ben Heap from H2 Ventures. This takes the total amount raised by Stockspot to $5 million since the business was founded in 2013.
What will Stockspot use this funding for?
The funds will be used to continue building Stockspot’s digital offering, attract new clients and will allow more Australians to access transparent professional investment advice.
Commenting on the capital raise Chris Brycki Stockspot CEO & Founder said, “The capital raise will allow us to further develop our digital advice offering and attract a broader range of Australian investors.
“Our new shareholders have deep knowledge across ETFs, wealth management and fintech; their shared experience will bolster our growth capability. The calibre of Stockspot’s investors and the belief they have in our company demonstrates that digital wealth management will fundamentally change financial services in Australia.
“Graham is a global ETF pioneer, having invented exchange traded commodities and built a business managing over US$22 billion in assets. There is so much we can learn from him as we continue growing Stockspot.”
Graham Tuckwell said, “Stockspot has created a transparent, low-fee and a first class investment experience for clients.
“Technology has delivered better and cheaper asset management for all investors, through the creation of ETFs. Robo-platforms such as Stockpot will continue the process of using financial technology to deliver more accessible and more cost-effective investment solutions compared to those offered to date by traditional fund managers.
“I’m backing Stockspot so they can expand their business more quickly and thereby help more Australians become smarter investors.”
Alium Partner Rajeev Gupta said, “We’ve seen a mammoth global shift towards index funds and ETF investing in the last few years. To leverage this structural shift, we identified Chris and Stockspot as best positioned to benefit from the industry tailwind. Our participation in this funding round is a strategic move to ensure we’re backing the leading adviser in digital investment in Australia.
“We are confident of the robustness of the technology behind Stockspot to successfully meet increasing consumer demand for sophisticated investment advice”
Danny Bhandari said, “People interested in building wealth require high quality, technology enabled advice and investment services. Stockspot offers this in a low cost, transparent and convenient way that really suits investors, whether they are experienced or new to investing. I am confident Stockspot is well on the way to becoming a large player in the next generation of wealth management providers.”
What has Stockspot been up to lately?
Since launch in 2014 Stockspot has grown quickly, with thousands of clients and a strong performance track record, Stockspot’s five core investment strategies have generated consistent after-fee returns.
Stockspot recently launched the Stockspot Partners Program and expects to see more interest from advisers and accountants who want to offer automated investing to their clients. Self Managed Super Funds (SMSFs) are also a key customer for Stockspot having recently partnered with Class Super to simplify the administration process for SMSF clients.
Continuing Brycki said, “Globally, robo-advice is the fastest growing category of wealth management, it is expected by 2020 total global assets under management (AUM) will grow to $2.2 trillion US.
“Originally fuelled by investors in the US and Europe, Australian investors are fast catching on. I believe the opportunity for Stockspot is huge.”
“Furthermore, with Australia’s $2.3 trillion superannuation system and the focus on self-sufficiency in retirement, getting sound investment advice is crucially important.”
Stockspot is recognised as a leader in digital investment advice both in Australia and around Asia. In 2016 founder Chris Brycki was invited to join the ASIC Digital Finance Advisory Committee and ASIC Financial Advisers Consultative Committee. In May he will be speaking at the New Zealand CFA Society Conference on Disruptive Innovation in Financial Services.