Madrid-based licensed securities agency, offering a digital end-to-end wealth management solution for retail investors, Finanbest, raises €409.7K on Crowdcube, more than doubling its goal of €196,000.
The capital obtained will be used for its growth plan and to make further developments to its platform. In total, 290 private investors of 36 nationalities have invested and the maximum individual investment was placed at €200,000, according to the Spanish startup in a press release.
Founded in February 2016 by former banking director Asier Uribeechebarria, the automated investment platform uses artificial intelligence so that anyone can invest from €3,000.
“We are very happy to have closed this round of financing through Crowdcube so successfully in a market as competitive as the international one and that is the definitive impulse for our strategic growth plan,” said CEO Uribeechebarria in a statement.
Finanbest offers personalized portfolios of leading investment funds with global diversification and bases its model on that used by large estates and private banks. In addition, it has a team of expert engineers, mathematicians, economists and lawyers, who select the best funds and supervise the investments of their clients.
In 2017, the Finanbest portfolios obtained returns ranging between 1.1% and 11.1% per annum, depending on the type of plan and investment, and which are, on average, two points above the average of the market in each category.
With the investment achieved, Finanbest will invest in the development of new functionalities that allow it to maintain its cutting-edge technology. Among its main objectives are to increase the number of investor clients and consolidate its position in the Spanish market, following the model of American and European advisors such as Betterment and Nutmeg.
This is the first time that Finanbest opens its capital to external investors.
Finanbest Traction and Growth
Target market: mutual funds in Spain, more than €250,000 million in 2017, 20% annual growth in the last five years and nine million savers and investors.
In 2016 Finanbest built the platform, obtained necessary licenses and recruited the team. In April 2017 it launched its business and in the last 12 months it has closed two relevant distribution agreements, has more than 250 retail clients and manages €10 million AuM.
The Spanish startup’s personalised portfolios have yield 2% additional average return over the market and cost savings of up to 70%.
The customer acquisition costs and time constraints faced by traditional human advisors have left many middle-class investors underadvised or unable to obtain portfolio management services.
Finanbest offers an investment model for anyone investing €3,000 or more, using an experienced team and advanced technology.
It uses a four-step model automated and optimised from beginning to end:
- Outline of the investor’s risk profile
- Customized investment proposal using the Black-Litterman algorithm
- Selection of world leader funds
- Dynamic monitoring