Automated investment provider Stockspot has announced the closure of a $3 million fundraising exercise off the back of support from a prominent Australian ETF manager.
ETF Securities founder Graham Tuckwell led Stockspot’s capital raise alongside investment manager Alium Capital, with algorithmic trading entrepreneur Danny Bhandari also participating, according to a statement from Stockspot.
The firm has now raised $5 million since being launched in 2013 by former UBS portfolio manager Chris Brycki, most of which will be put towards client acquisition efforts, the statement said.
“The capital raise will allow us to further develop our digital advice offering and attract a broader range of Australian investors,” said Stockspot chief executive Chris Brycki.
“The calibre of Stockspot’s investors and the belief they have in our company demonstrates that digital wealth management will fundamentally change financial services in Australia.
“Graham is a global ETF pioneer, having invented exchange traded commodities and built a business managing over US$22 billion in assets. There is so much we can learn from him as we continue growing Stockspot.”
Mr Tuckwell said Stockspot has created a transparent, low-fee and first-class investment experience for clients.
“Technology has delivered better and cheaper asset management for all investors, through the creation of ETFs. Robo-platforms such as Stockpot will continue the process of using financial technology to deliver more accessible and more cost-effective investment solutions compared to those offered to date by traditional fund managers,” Mr Tuckwell said
“I’m backing Stockspot so they can expand their business more quickly and thereby help more Australians become smarter investors.”
On Thursday, 4 May, Mr Tuckwell’s ETF Securities took full control of ANZ ETFS, its joint venture with ANZ, after the bank sold back its stake in the business.