Summary
Mutual funds were created to simplify investment decisions. However, over time they have grown more and more complicated. By the end of 2018 alone, there were nearly 119,000 mutual funds across the globe. With so many mutual funds in existence today, figuring out the best one to buy into can be almost impossible.
That’s why last week we recommended Infinovate as a Deal to Watch. They have created a subscription-based SaaS (Software-as-a-Service) platform that makes analyzing mutual funds less burdensome.
We sat down with founder Blair Buick to discuss what sets Infinovate apart and where the company is heading.
Funding Round Details
- Company: Infinovate
- Security Type: Equity - Common
- Valuation: $10,000,000
- Min Investment: $100
- Platform: Netcapital
- Deadline: Dec 4, 2020
For those who don’t know, what is the genesis story of Infinovate?
Investors take due diligence very seriously. Wealth Managers come across thousands of funds and fund managers every year. Every manager and investor needs a way to ensure that they are managing their client’s money in the best way possible.
That means in-depth, meaningful analysis that provides actionable, timely, and relevant information. The lack of options in the market made clear that Infinovate was a necessity.
Additionally, our goal at Infinovate was to build a model that assisted analysts in identifying style drift in managers before style drift became a problem. This feature compares predictive performance each day versus the actual performance.
How do you plan on allocating funds raised in this round to scale the business?
The financing will be used for (1) additional product development to improve the platform, (2) adding to the management team, and (3) initial marketing.
Who are your target customers and how do they use the product?
Registered Investment Advisors, Institutional investment platforms/investors, family offices, and individual investors.
Do you have any competition, if so, how do you differentiate?
The competition is composed of data providers such as Morningstar and Bloomberg who do not produce predictive, personalized analytical investment information to users but rather act as content creators.
What are the biggest risks associated with your business?
Our ability to manage growth and continue to develop innovative analytics.
How is your team uniquely positioned to win out in this market?
The Infinovate team is composed of seasoned professionals and analytic creators that are focused on predictive results instead of reporting results. This is unique in the marketplace.
What does your business model look like?
The business model is a subscription model priced on depth and breadth of data and platform use.
As you think about the business 5-10 years down the road, what do you see exit opportunities looking like?
There are three basic exit opportunities. First is the opportunity to merge or be acquired as part of a “roll-up” in the financial analytics space. Second is the opportunity to be acquired by a national or international institutional investment platform. Third is the opportunity to take the company public based on its growth and performance.
Why equity crowdfunding?
Crowdfunding appears to be the most efficient way to obtain a broader base of shareholders instead of placing the amount of required funding into the hands of a single investor.
We at KingsCrowd are excited to see where Blair and her team take the company. Infinovate is currently raising on NetCapital.
