After having doubled its crowdfunding goal two months ago, Madrid-based Finanbest closes out the second part of its funding round, totaling €900,000.
Madrid-based licensed securities agency, offering a digital end-to-end wealth management solution for retail investors, Finanbest, first raised €400,000 on Crowdcube in July and has now received an additional injection of €500,000 in its first foray into the fintech sector, El Referente reported on Thursday.
The money from the round will go to the growth plan and the development of new features on the platform. Among the main objectives for the coming months are to increase the number of clients to consolidate its position in the Spanish market and to close new collaboration agreements.
“We are growing hand in hand with a growing demand for independent management with very low fees and high quality, and we are very happy to have closed this round of financing with such success, which demonstrates the confidence of very demanding investors in our project,” said Finanbest CEO Asier Uribeechebarria in a statement via El Referente.
“The most important data point for us is that 95.9% of our clients would recommend Finanbest, four times more than the average of Spanish banking, which is 20.3%,” he added.
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.
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