OpenInvest Secures USD10.4m in Series A round led by QED Investors
OpenInvest, a digital investment advisor for socially responsible investing, has raised USD10.4 million in a Series A funding round led by QED Investors, with additional participation from Andreessen Horowitz (who led OpenInvest's previous venture round in 2017) SYSTEMIQ, Wireframe Ventures, Yard Ventures and Abstract Ventures.
According to Morningstar's Sustainable Funds US Landscape report, assets under management in portfolios using various approaches to sustainable investing have grown to an estimated USD23 trillion globally, an increase of more than 600 per cent over the past ten years. OpenInvest's platform delivers customised investment portfolios aligned with an individual's or institution's values. ESG (environmental, social, and governance) investing, or investing with the intention to generate a measurable, beneficial social or environmental impact alongside financial returns, is increasingly in-demand.
"Socially responsible investing is one of the fastest-growing segments of equities management," says Greg Mazanec (pictured), Partner, QED. "Early on, OpenInvest recognised the need for an efficient way to personalise investments around values and created a first-of-its-kind investment technology platform that filled this void. OpenInvest is positioned to become the next tech-driven financial powerhouse, and we're excited to support the company's rapid growth."
OpenInvest has digitised the management of custom managed accounts. Clients ranging from only USD100 to tens of millions of dollars in assets – and their advisors – use OpenInvest to instantly launch portfolios that reflect particular environmental and social concerns, while tightly tracking any market index or specified investing strategy. Thereafter, they have access to cutting-edge features such as real-time impact reporting, voting in shareholder resolutions with a swipe, full transparency, tax-loss harvesting and other features.
"OpenInvest is building the wealth management platform of the future," says Conor Murray, co-founder and chief executive officer. "We put advisors and clients in the driver's seat, while replacing layers of intermediation beneath them who traditionally blocked transparency and control."
Investors can align their assets with their values by customising their portfolios through OpenInvest's cause-based investment screens, including but not limited to: divestment from fossil fuels producers, deforestation, the prison industrial complex or weapons; supporting gender equality, LGBTQ rights, refugees and low-carbon leaders, among many others. Investors can also further individualise their portfolios by including or excluding individual companies. In the meantime, each user's portfolio auto-rebalances to keep them tightly tracking market indices.
"OpenInvest has built the infrastructural layer for the coming post-fund paradigm," says Joshua Levin, co-founder and chief strategy officer, OpenInvest. "In the past, financial institutions' competitive advantages came from black boxes. The future is defined by transparency, technology, and values."
Built by hedge fund technologists and civil society leaders, OpenInvest is changing the way that people invest. The new funding will enable the company to further accelerate its growth and support its continued technological innovation. Recently, the company expanded its customer offering from retail investors to advisors and to institutions such as pension funds, family offices, foundations, and endowments.