Softbank Group Co., Ltd.
Is investing in startup investment platform Atom Finance, and Japanese conglomerates are betting that the retail boom will continue.
Founded in 2018, Atom Finance enables individuals to track their investment and research holdings. In addition to SoftBank, existing investors General Catalyst and Base Partners have also participated in the latest $ 28 million funding round. According to someone familiar with the matter, the investment is worth about $ 150 million for Astro Boy.
Atom was founded by Eric Shoykhet, a hedge fund Governors Lane covering financial services companies and other sectors from 2015 to 2018. He believed that lower transaction costs would encourage more retail investors to trade. This meant that they needed a new kind of tool to guide them.
In 2019, a major brokerage firm launched commission-free stock trading to avoid threats from digital startup Robinhood Markets Inc. Today, brokerage firms of all kinds are competing for retailers, and free trading is booming.This has been particularly revolutionary in the past year as more investors with free time during the pandemic have used their growing power on the market and sent meme stocks such as GameStop. Co., Ltd.
Atom is not a trading platform, but it is still a beneficiary. Hundreds of thousands of users have registered since the platform was released in 2019. The company refused to provide accurate details on the number of users, but the number of paid customers has increased over the past year.
“I think much of the increased investor participation in the market remains here,” said 29-year-old Shoykhet. “The story we never accepted was that aggressive investment died.”
Shoykhet wants his company to grow as individuals look for cheap tools to help them invest. Atom’s full subscription costs $ 9.99 per month, a fraction of the cost of a Bloomberg terminal.
Atom will also license its products to banks and brokerage firms.
SoftBank led a Series B funding round at Atom through a $ 5 billion fund created to focus on Latin America. This reflects SoftBank’s bet that the rise of individuals in the US market will begin in that region as well.
This year, Atom pursued its own deal to offer its products to Banco Inter, a Brazilian digital bank that also invests in Softbank’s Latin American fund. Shunyatta, managing partner of Softbank’s Latin American fund, is a portfolio company that Softbank later hopes to facilitate Astro Boy’s other similar transactions.
“The overall idea is to provide high quality data to people who don’t have access to the data,” he said.
Nyatta said he was attracted to Shoiket’s opportunism and his willingness to focus on Latin America strategically. Shoykhet recently moved to Miami and plans to open an office in Miami to facilitate business with Latin America.
However, there is one thing that Atom Finance has no plans to do at this time. That is, I don’t want to be a trading application.
Shoykhet is skeptical of the practice of many electronic brokers who route transactions to major trading companies in exchange for payments. The industry defends this practice, known as order flow payments, and claims to reduce transaction costs for individuals. Others argue that even if investors take too much risk, they hurt investors because they encourage large numbers of transactions by users to maximize profits.
“I don’t think it’s in the best interests of the user,” he said.
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SoftBank Latin America Fund Leads $ 28 Million Atom Finance Financing Round
Source link SoftBank Latin America Fund Leads $ 28 Million Atom Finance Financing Round