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Stockspot: First FinTech startup to raise $250,000 from AWI Ventures

Online investment adviser and fund manager Stockspot is the first of many startups to receive funding from AWI Ventures – a venture fund launched by Federal Minister for Communications, Malcolm Turnbull on March 13th.

Today, Stockspot – a financial tech startup which offers an automated investment service, combining personal investment advice with portfolio construction and a web-based architecture – announced that it secured a total of $250,000 in seed funding, which will be used to support its growth strategy.

Stockspot Founder and CEO, Chris Brycki said they will be using the capital to invest in the people and technology needed to scale their low-fee online investment service.

The funding will help Stockspot mark its territory in the $2 trillion dollar investment industry which has historically been dominated by Australia’s big four banks and their distribution networks.

“Currently the high costs and account minimums required to access financial advice makes investing inaccessible for many younger people. By leveraging technology we are able to open Stockspot to investors of all sizes, down to a minimum starting portfolio size of $2,000,” said Brycki.

“Where people do seek advice they are becoming increasingly aware of the conflicts of interest that exist within the industry. We want to help Australians cut through the many confusing messages out there to achieve the best possible long-term returns on their investments.”

Stockspot has focused on stripping back investment costs by using ASX listed Exchange Traded Funds. The listed passive funds are combined in a way that aims to match clients with appropriate portfolio risk.

“Indexed investment approaches have long been shown to outperform active stock picking due to a combination of lower fees and less impact from behavioural biases. Stockspot’s automated investment process provides a service that is accessible, smart and secure,” said Brycki.

Ben Heap, CEO of AWI commented in a media release, “Stockspot’s approach fits nicely into the financial services themes we’re focused on. Self-directed investors and SMSF trustees are looking for ways to improve diversification, cut costs and reduce portfolio risk. The Stockspot service ticks all of those boxes.”

In addition to the Stockspot investment, AWI Ventures will be investing $1 million across 10 early stage Australian financial services startups via its Accelerator Program.





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