London-based Stockflare has become the first fintech startup to gain an investment pledge from the London Co-Investment Fund, as it raises seed capital on Crowdcube.
The startup, which makes it easier for private investors to pick to pick shares, has now reached 93% (£279,520) of its Crowdcube target of £300,000 of seed capital to develop the service further and extend its customer base.
The London Co-Investment Fund was founded and is managed by Funding London and Capital Enterprise.
It has raised £25m from the Mayor of London’s Growing Places Fund to invest in high growth tech, science and digital startups in London.
Stockflare was founded by CEO Shane Leonard, a highly experienced and award-winning equity analyst, who was frustrated watching small investors pay too much for poor performing funds. Funds run by investment managers who get paid regardless of how they perform.
Leonard said: “The concept of Stockflare came to me after years of watching small investors pay high charges but get mediocre, not superior returns. Unfortunately, most fund managers fall short of their benchmark, consistently.
“Through my experience working in equity markets I knew that with the right tools, most investors can look after their investments as well as the professionals would, but at a fraction of the cost. Stockflare delivers those tools to small investors around the world for free.
“The result is easy access to the information that is most important, delivering significantly more usable financial data for small investors.
“We cut through the self-serving and patronising rhetoric of the fund management industry that has become rich making the public believe they would be lost without the help of the professionals.
“The support shown by the first ever pledge by LCIF for a FinTech business and the money already committed before the campaign went public today shows that there is a thirst out there to back a startup whose mission is to help everyone improve how they invest.
“We are excited about welcoming more investors to complete the round and then delivering a business that can continue to support their investment decisions over the years ahead.”
Through its beta phase, Stockflare has already recruited over 10,000 users across the UK, USA and other countries across the globe.