Aussie online wealth manager StockSpot secures $1.25M

StockSpot, an online investment adviser and fund manager from Australia, announced today it raised US$1.25 million in series A funding for its expansion.

The round was co-led by Australian fintech venture capital firm H2 Ventures and Global Founders Capital, the investment fund of Rocket Internet.

Founded by former UBS portfolio manager Chris Brycki, StockSpot is among a wave of fintech startups that want to upend traditional financial institutions. Robo financial advisers similar to StockSpot include Wealthfront and Betterment in the US, and Nutmeg in the UK.

Using its algorithms, StockSpot assesses your financial situation, investment goals, and risk tolerance, then recommends where you should put your money in. It has created low to high risk portfolios that spread your investment over a combination of assets like stocks, fixed-income, and gold.

What makes it an attractive alternative to traditional fund managers is low cost. StockSpot claims to charge a fraction of the fees taken out by incumbents. It doesn’t charge entry or exit fees, and keeps all assets under your name so you’re assured they’re safe. Tax reporting is easy.

Open to investors outside and within Australia, you can get started with as little as US$2,000, way lower than the tens of thousands of dollars most institutional fund managers require. Service for investments under US$10,000 is free for the first year. This low barrier to entry encourages even young people to invest.

Daniel Jones, partner at Global Founders Capital, says: “StockSpot has taken the complicated and often murky area of wealth management and made it simple and transparent for consumers. [The StockSpot team is] the first mover in Australia and [has] grown very fast to become a strong and trusted brand.”

Since its launch in 2014, Stockpot has grown its registered users to over 3,000. It won’t disclose the value of client funds under management, but it says they’re up 300 percent from the start of 2015.