Stockspot raises $3 million Series B to build out AI robo-advice technology
Investment robo-advice startup Stockspot has announced the closing of a $3 million Series B round led by ETF Securities founder Graham Tuckwell, which will be used to help build out its digital product and expand its user base.
Marking the third funding round for the business, the Series B saw participation from growth fund Alium Capital, algorithmic trading entrepreneur Danny Bhandari, as well as contributions from returning investors, H2 Venture founders Toby and Ben Heap.
With the startup’s total raise to date closing in on $5 million, Stockspot founder Chris Brycki accounted the business’s growth to the fast growing industry wealth management and investment sectors.
“Globally, robo-advice is the fastest growing category of wealth management, it is expected by 2020 total global assets under management 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,” he said.
Brycki added that investment advice will also become increasingly relevant over the years as Australia places a closer focus on self-sufficiency in retirement, with the superannuation system currently sitting at $2.3 trillion and expected to grow.
Stockspot’s platform offers professional investment advice to an individual based on their financial goals, risk profile and income, to help them make smarter investment decisions.
Clients can view their investment earnings through an online dashboard, to help them visualise investment data and make tax reporting easier.
Last year saw the business integrate artificial intelligence (AI) and machine learning into its process of giving financial advice. With this technology, Stockspot takes into account consumer behaviour and actions, offering a tighter, data-driven approach.
Following the raise, the business is now looking towards further expanding its digital advice offering, increase its customer base and attracting a “broader range of Australian investors” in future.
Alium Capital Partner Rajeev Gupta said the firm was confident in Stockspot’s ability to meet the “increasing consumer demand” for professional investment advice, thanks to the sophistication of the AI-backed technology.
“We’ve seen a mammoth global shift towards index funds and exchange-traded fund (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,” said Gupta.
Danny Bhandari added that Stockspot was unique because of its low cost and transparent offering to the customer.
“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,” he said.
Looking towards other avenues for growth, Stockspot recently launched the Stockspot Partners Program, a program which rewards businesses for gaining more investors by granting them access to higher-tier benefits.
Image: Chris Brycki. Source: Supplied.