StockViews Closes Second Round Equity Funding, Earns FCA Authorization

London-based StockViews completed its second round of funding this week. The $640,000 in new capital (£500,000) will help fuel the launch of the company’s equity research platform this summer, putting the technology in the hands of clients before new regulations take effect in January 2018. Both new and existing investors participated in the funding, which takes the company’s total capital to more than $1 million.

“As a result of the upcoming regulatory changes under Mifid II,” StockViews CEO Tom Beevers said, “it is clear there is a growing demand for high quality, differentiated equity research.” He added, “The new capital, our expanding team of leading analysts, and the arrival of our new Executive Chairman will position us well for this opportunity.”

Pictured: StockViews CEO Thomas Beevers demonstrating StockViews Signal at FinovateSpring 2015.

One of the ways Mifid II will change the landscape for asset managers is by requiring them to separate payments for research to investment banks from commission payments. StockViews believes this will encourage asset managers to either pay for research directly or use “Research Payment Accounts” as a way to pass the cost of research to customers. The company sees this as generating opportunities for firms that can provide independent equity analysis at a lower cost.

In addition to the funding news, StockViews announced that the company had been granted FCA authorization and appointed former Fidelity International president, Thomas Balk, as the company’s Executive Chairman. Balk joined the StockViews board last spring, the same month StockViews pulled in $355,000 in seed funding.

Founded in 2014, StockViews demonstrated its StockViews Signal technology at FinovateSpring 2015. Signal aggregates the recommendations from the top-rated analysts on the StockViews network to provide buy and sell signals. Last fall, StockViews won top honors and a $50,000 investment at the G-Startup Worldwide competition at GMIC Bangalore. We featured StockViews in our roundup of top business-to-business wealth tech players. Read more about the company in our Finovate Debut feature.

Finovate Alumni News

On Finovate.com

  • StockViews Closes Second Round Equity Funding, Earns FCA Authorization.

Around the web

  • EverSafe picks up $250,000 in capital from JP Morgan as one of eight FinLab startup winners.
  • Affinity Plus FCU ($2 billion in assets) to deploy Fiserv’s Architect platform to power its online and mobile banking services.
  • Trusted Key CEO Prakash Sundaresan looks at changing customer expectations, security challenges, and the shifting regulatory landscape through the lens of FinDEVr London.
  • Payfone wins patent for technology that fights SIM swap fraud.
  • Ghana’s Premium Bank chooses NetGuardians’ anti-fraud solution, FraudGuardian.
  • LendingTree acquires DepositAccounts for undisclosed sum.
  • AutoGravity unveils partnership with Fletcher Jones Auto Group.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Top Business-to-Business Wealth Tech Players

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If you’ve been following our series on wealth tech, you’ve seen our analysis of the industry as a whole, a review of the top trends, and an examination of B2C wealth tech players.

Our wealth tech coverage continues this week with a review of business-to-business (B2B) players in the wealth tech space. These are companies that cater directly to banks, advisors, or brokerages, instead of offering products or services directly to consumers. B2B wealth tech is a large category, so I’ve sub-divided it into four digestible groups and listed my top picks for each category. Since category sizes vary, the number of selections also varies.

Alternative investment services
These are platforms that help advisors connect clients with unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

Screen Shot 2017-01-19 at 11.44.57 AMEquityZen’s EZ Institutional lets advisors give clients access to a diverse asset class

Technology for advisors and brokerages
These are tools available via API, SDK, or web interface to help advisors compete with robo advisors by allowing them to invest with less bias, increase client communication, scale operations, find new clients, and more.

Screen Shot 2017-01-19 at 11.40.41 AMTrizic offers advisors their own digital tools to compete with robo advisors

Non-U.S. B2B investment and advisor technology
Similar to the above category, these companies offer tools for advisors outside of the U.S.

Screen Shot 2017-01-19 at 11.30.52 AMmeetInvest helps advisors invest like world-renowned market experts

News and Information Companies
These are online platforms, APIs, or SaaS offerings that provide advisors market information, show them trending news, or connect businesses with market data to power their own products.

Screen-Shot-2016-10-31-at-3.22.22-PMForwardLane’s dashboard acts like a private research analyst for advisors advisors, helping them stay current on new trends and funds

Where Are They Now? FinovateSpring Alums Raise More than $326 Million in a Year

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Last week we took a look at what the alums of FinovateSpring 2015 have been up to in the year since they demoed on the Finovate stage. Today, we’re focusing on the funding.

All $326 million of it.

Of the 72 companies that demoed at FinovateSpring 2015 in San Jose last year, 21 of them had raised capital within a year. Kabbage’s raise of $135 million certainly stands out. But the $25 million investment picked up by itBit in May of last year, as well as the $15 million raised by Trulioo and the $12 million raised by Moven were also major contributors to a strong fundraising performance from the Class of FinovateSpring 2015. And this doesn’t even include companies such as Yodlee, which was acquired by Envestnet for $660 million, or Aurora Financial Systems, bought by fellow Finovate alum, Finicity, for an undisclosed sum.

March 2016

January 2016

Dec 2015

October 2015

September 2015

August 2015

  • [M&A] Holy Yodlee! Envestnet to Buy Yodlee for $660 Million – video

July 2015

June 2015

May 2015

——-

FinovateSpring 2016 is less than a month away. Pick up your tickets today and save your spot at our upcoming spring conference in San Jose, California.

 

StockViews Raises $355k in Seed Funding, Adds Fidelity’s Balk as Chairman

Stockviews_homepage_March2016

Stock market research platform Stockviews has raised £250,000 ($355,000 USD) in seed funding. Participating in the round were angel network Craigie Capital, the London Co-Investment Fund, and former head of Fidelity International, Thomas Balk, who will join Stockviews’ board of directors as chairman.

Stockviews CEO Tom Beevers called Balk’s decision to join the company “a huge validation of this new approach to equity research.” Beevers praised Balk’s 25 years of experience in global asset management, including 16 years at Fidelity. “We’re delighted to have such a high-caliber executive heading up our board,” Beevers said.

Stockviews_stage_FS2015_2

Pictured: StockViews CEO and Founder Tom Beevers demonstrated his company’s technology at FinovateSpring 2015.

Balk spoke to StockViews’ ability to help improve sell-side research, which he said “has long had a poor reputation for generating results.” Focusing on the competition among fund managers as a main driver of interest in new technologies, Balk sees StockViews as becoming the “leading marketplace for high-quality, independent investment research.”

The news comes almost a year since StockViews made its Finovate debut at FinovateSpring 2015. The company’s platform connects individual stock market investors with more than 500 independent equity analysts who make their research available online. The “StockViews Signal,” launched at FinovateSpring 2015, provides a straightforward buy or sell signal for stocks based on the aggregated recommendations of the platform’s highest-rated analysts.

Founded in 2014, StockViews is headquartered in London, United Kingdom.

Finovate Alumni News

On Finovate.com

  • “BillGuard App Changes Name to Prosper Daily”
  • “Capitalise.com to Join Microsoft Accelerator London”
  • “CashSentinel Launches in France with SFPMEI Partnership”
  • “StockViews Raises $355k in Seed Funding; Adds Fidelity’s Balk as Chairman”

On FinDEVr.com

Around the web

  • Poland’s mBank elects to focus on HCE for mobile payments over NFC.
  • Spain’s BBVA upgrades its ATM network to enable cash recycling.
  • TechCrunch features multiple Finovate and FinDEVr alums in its recommendations of financial products for the gig economy.
  • Mitek elects CEO James B. DeBello as chairman of the board.
  • CereTel, selects Cachet Financial Solutions to develop, deploy and manage new prepaid mobile banking platform.
  • Lendio partners with SBE Council to offer its lending resources to SMB owners.
  • Tradeshift announces MetaProcure as reseller.
  • First National Bank to install Insuritas insurance agency solution for its customers.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate’s European Alums Raised More Than $350 Million in 2015

Euros_purple

Nineteen Finovate alums headquartered in Europe raised $350 million in 2015.

From the $16,000 in seed money raised by U.K. startup, StockViews, to the €82 million investment received by Germany’s Kreditech, we’ve counted every euro, pound, and dollar that investors poured into our European alums. And whether the funding represented an initial infusion of capital or was part of a multi-stage Series E round, it is clear that investors are very interested in the fintech innovations of Europe.

Take a look for yourself at the “European Portfolio” from 2015 below, featuring Finovate alums from the United Kingdom, Ireland, Germany, Switzerland, and the Netherlands.

GermanFlagGermany

 

Ireland_FlagIreland

 

Netherlands_FlagThe Netherlands

 

 

Switzerland_Flag

 

Switzerland

 

 

UK_FlagUnited Kingdom


There’s still time to join us in London for FinovateEurope! Our two-day conference returns to Old Billingsgate Market Hall, February 9 and 10. Get your tickets today and save your spot.

 

 

Finovate Alumni News

On Finovate.com

  • “Banking Suite Provider Urban FT Acquires Wipit” Come see Urban FT at FinovateFall September 16 & 17.

Around the web

  • Niklas Adalberth steps down as Klarna’s deputy CEO.
  • ShopKeep to offer discounts to members of the MasterCard Easy Savings program.
  • Yodlee partners with Salesforce to offer advisers a comprehensive view of their clients’ financial accounts. Come see Yodlee’s presentation at FinDEVr, 6/7 October.
  • Monex to incorporate corporate-actions data from Markit. See Markit at FinDEVr 2015 in San Francisco.
  • Bank Innovation takes note of the Moven approach to displaying transaction histories.
  • Tech Vibes features Trulioo in a look at Vancouver, British Columbia, as a home for fintech innovation. See Trulioo at FinovateFall 2015 in New York.
  • Investment News looks for the next robo-adviser acquisition in the wake of BlackRock’s deal with FutureAdvisor.
  • Waters Technology highlights Nous, StockViews, AnalytixInsight, and Xignite in a review of how innovators are using market data. See Xignite at FinDEVr 2015 in San Francisco.
  • Flint enhances Android app to include immediate electronic receipts via SMS.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Debuts: StockViews Leverages Crowdsourcing, Delivers Better Research to Fund Managers

StockViews_homepage_Aug2015

According to StockViews co-founder and CEO Tom Beevers, the only thing worse than the amount of money spent on Wall Street research is the fact that the research often isn’t very good. For many fund managers and advisers, managing money with Wall Street research is like dining at a restaurant known more for its reputation than for the real quality of the food.

“Billions are spent on equity research each year to help fund managers beat the market,” Beevers said from the stage at FinovateSpring 2015. “But these experts rarely [get] it right.”

So Beevers’ solution is two-fold. First, top analysts, especially independent analysts, need a way to get their opinions and research to the professional investing public. Second, professional investors like fund managers need a way to both connect with these analysts, as well as a way to determine which of them consistently beat the market—and show the research to back it up.

The resulting platform, StockViews, and its signature feature, StockViews Signal, was unveiled this year at FinovateSpring 2015. StockViews now has more than 500 advisers on the platform generating ratings, opinions, and research, providing better results and lower costs for fund managers.

StockViews_stage_FS2015

StockViews CEO and co-founder Tom Beevers demonstrated his company’s technology at FinovateSpring 2015 in San Jose.

“The platform is a way for fund managers to tap into something that was never there before,” Beevers said. He described a multi-billion dollar wealth management industry that is dominated by tradition and inefficiency not only on the financial advisor’s side, but on the client side, as well. “The lack of knowledge by customers doesn’t help,” Beevers added. “Customers don’t realize that they are paying for research and not the fund manager.”

Company facts:

  • Founded in May 2014
  • Headquartered in London, United Kingdom
  • Features more than 500 active contributing analysts on platform
  • Generated more than 23,000 ratings since May 14
  • Tom Beevers is CEO

How it works

StockViews is designed to do three things:

  • Make it easy for analysts to join the platform to provide market opinion and research
  • Provide a way for fund managers to readily determine which analysts consistently outperform the market
  • Deliver actionable buy, sell, or hold ratings that are better than those from Wall Street research

StockViews_Art1a

Each analyst on the platform has his or her own page where fund managers can read current opinions and analysis, as well as more historical market calls and research. Analysts are designated as analyst, senior analyst, or vice president based on their overall performance in terms of (1) market price outperformance, (2) breadth and duration of coverage (more markets for a longer time is generally stronger than fewer markets for a shorter time), and (3) peer-reviewed research. This last factor adds human, non-quantifiable input regarding which analysts produce not only good performance metrics, but also cite research to explain and support the outperformance.

“The next Warren Buffet may come from Bangladesh,” said Beevers. “The next George Soros may come from South Korea.” Beavers is a big fan of the revolution in self-teaching, which he thinks is key to the development of independent analysis of the equity markets in recent years. He notes that part of his inspiration for launching StockViews came from watching his fund-management colleagues move away from Wall Street research and toward independent research, increasingly available online. “And what we’re doing is isolating those people who can consistently outperform the market, and then aggregating their collective wisdom,” Beevers explained. “For a fund manager, this provides a valuable tool.”

StockViews_Art2

The StockViews Signal, unveiled at FinovateSpring 2015, takes the information from the platform’s hundreds of analysts to provide a crowdsourced take on which stocks deserve buy, sell, or hold ratings. The Signal compares market ratings done by the platform’s analysts—particularly, the top analysts—with market ratings provided by Wall Street. Fund managers can use the Signal to spot instances of significant divergence between Wall Street opinion and the opinions of historically outperforming analysts on StockViews’ platform.

For example, it may not be especially significant if Wall Street is 20% in favor of buying a stock and the analysts on the StockViews platform are at 50% in favor. But if the top analysts—the Signal can be subdivided to show opinions of all platform members, analysts, vice presidents, or Wall Street analysts—are 70% in favor, the divergence between the top analysts and Wall Street may be worth investigating.

The future

With the launch of StockViews Signals this spring, the main task is to turn its community into a true marketplace. “We’ve built a good community and are starting to look at ways to monetize that talent,” Beevers says. He says while most of the platform will be free, the opinions and research from top analysts will be a behind a paywall. Beevers believes fund managers will pay “a few hundred dollars a month” for access, and says “eighty percent of the fee will be passed on to top analysts.”

On the funding side, the company raised $16,000 in seed investment in July, and is continuing to build support from the investment community. The platform has more than 1,800 members, and has provided more than 26,000 ratings to date.

StockViews_Art3b

Beevers admits he envisions a world in which Wall Street research is no longer required reading for fund managers. He says that in ten years, “investors’ requirements for research can be efficiently matched with analytical talent online. And in the process, we can strip out the unnecessary cost of the Wall Street machine.”

That’s a tall order. But innovation in fintech often boils down to one of two approaches: (1) build a better mousetrap or (2) build a better way at accessing the better mousetraps built by others. For fund managers looking to escape the world of expensive and often overrated Wall Street research, StockViews may be a rare example of both.


Check out the StockViews live on stage at FinovateSpring 2015 in San Jose.

Finovate Alumni News

On Finovate.com

  • “Dashlane Integrates Samsung Biometric Technology in Android App Upgrade”
  • “Revolut Launches to Public, Announces $2.3 Million in Funding”

Around the web

  • PYMNTS looks at OnDeck’s record-breaking quarter.
  • Red Herring names Kabbage a Top 100 Private Company.
  • Geezeo to power BankMobile’s PFM.
  • Alpha Payments Cloud using Snapcard to enable AlphaHub users to accept Bitcoin payments.
  • PrivatBank to offer remittance services courtesy of TransferWise.
  • StockViews earns a spot in the 2015 Startupbootcamp FinTech London cohort.
  • ING Bank Slaski launches ING Business for Apple Watch app powered by Comarch Mobile Banking.
  • Caltech Letter interviews Financeit CEO Michael Garrity.
  • The Indian Express profiles the biometric authentication technology of EyeVerify.
  • Aragon Research names eSignLive by Silanis Technology as a “Hot Vendor” in digital transaction management (DTM).
  • peerTransfer petitions Chinese government to open office in Shanghai.
  • The Independent looks at the IPO plans of Fenergo in light of the company’s recent funding.
  • Investment News highlights Vanguard, Wealthfront, and Betterment in a look at how much money is being managed by robo-advisors.
  • Spreedly surpasses $1 billion in annual payment volume. Come see Spreedly at FinDEVr, 6/7 October in San Francisco.
  • Expensify integrates with Workato to connect it with more than 50 business apps.
  • CheckPoint’s ZoneAlarm Launches Windows 10 Compatible Antivirus Software for Consumers.
  • The Mifos Initiative joins The Open Source Initiative, a global nonprofit that promotes and protects open source software, development and communities. Check out Mifos at FinDEVr 2015 in San Francisco, 6/7 October.
  • Stuart Frankel of Narrative Science earns a spot on Crain’s Chicago Business Tech 50.
  • USA Today column on personal finance for millennials features Kai Stinchcombe, CEO and co-founder of True Link.
  • Business Insider includes Lending Club and Coinbase in its list of the seven hottest startups in Silicon Valley.
  • Blooom and Future Advisor are profiled in a Forbes column on making the most out of your 401(k).

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.