Sydney fintech Stockspot has secured $3 million in a series B capital raising round, the startup revealed on Thursday.
Stockspot is a digital investment advisor, commonly known as a robo-advisor, and a fund manager founded by chief executive Chris Brycki, a former UBS and BlueLake Partners portfolio manager.
Stockspot also revealed that H2’s Toby and Ben Heap, who were already investors, and “algorithmic trading” entrepreneur Danny Bhandari contributed to the series B.
“Graham is a global exchange-traded fund (ETF) pioneer, having invented exchange traded commodities and built a business managing over $US22 billion in assets. There is so much we can learn from him as we continue growing Stockspot,” said Brycki.
Brycki said that the investment is testimony to his belief that robo-advisors are the way of the future for wealth management. The cash injection would allow the startup to further develop its product and expand its market to “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 series B means $5 million has now been invested into Stockspot since the startup was established in 2013. The company did not specify client numbers, other than to say it is in “the thousands”.
Alium Capital partner Rajeev Gupta said that there’s been a “mammoth global shift” to index and ETF funds in recent years and that Stockspot was recognised as having the inside running to benefit from the trend.
“We are confident of the robustness of the technology behind Stockspot to successfully meet increasing consumer demand for sophisticated investment advice,” said Gupta.
“Our participation in this funding round is a strategic move to ensure we’re backing the leading adviser in digital investment in Australia.”
Brycki, who joined UBS at the age of 19, is a leader within the Australian fintech industry, having been invited to join the ASIC Digital Finance Advisory Committee and ASIC Financial Advisers Consultative Committee last year.
He said that Australia is starting to catch up with the USA and Europe in its adoption of robo-advisors.
“I believe the opportunity for Stockspot is huge,” he said.
“With Australia’s $2.3 trillion superannuation system and the focus on self-sufficiency in retirement, getting sound investment advice is crucially important.”
The startup recently launched a partner programme to attract human advisors and accountants to on-sell its service to clients. The company also partnered with Class Super to expand into the self-managed super funds market.
Now read – CHRIS BRYCKI: 10 things I’ve learnt since starting out as a 19-year-old hedge fund manager
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