An Australian 'crystal ball' fintech startup for financial planning has scored $1.5 million in series A funding

Co-founders of Investfit with some of their investors. Gavin Daw (Investfit), Victor Jiang (Sapien), Helen Lorigan (Sapien) , James Claridge (Investfit), Ed de Salis (Investfit) and Daniel Biondi (Sapiens) in Sydney 24th February 2017. (Photo: Rick Stevens)

International venture capital firm Sapien Ventures has led a $1.5 million series A funding round for Australian fintech startup Investfit.

Investfit uses “sophisticated predictive analytics” to make “billions” of calculations in real time to simulate someone’s financial future. The software is aimed at financial planners and advisors, as well as the average consumer without access to professional advice.

A corporate version of the tool underwent a one-year pilot with AMP, and Mortgage Choice Financial Planning was announced today as the first dealer group customer.

Investfit co-founder Ed de Salis said that many Australians would run out of funds early in their retirement because of the wrong financial strategy.

“Investfit solves this problem through technology that helps advisers and their clients make better informed decisions along the way. For those who don’t currently use an adviser, Investfit can show the very real benefits of getting advice,” he said.

The $1.5 million injection will be used to build market share in Australia then expansion into Asia and the USA. The startup revealed that through Sapien’s connections, the software has been deployed for the BMY Group, an Asian financial services firm targetting the Chinese-speaking Australian clientele.

Investfit co-founder James Claridge said that the app beats current financial planning models and calculators that “assume fixed investment returns into the future” by predicting variability in future market returns.

“Serious processing grunt is required to crunch the billions of calculations in real time – impossible to do in a spreadsheet,” he said.

The software is also being pitched at industry super funds, so that members can be advised on which investments they should put their money into, taking into account assets and aged pension eligibility.

Investfit first launched in Sydney’s Stone & Chalk in 2015, and was named the winner at FST Media’s Startup Showcase last March.

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