OpenInvest, a fintech startup that allows investors and advisors to create portfolios composed of companies that follow certain environmental, social and governance criteria, has raised $10.4 million from prominent Silicon Valley investors.
The San Francisco-based company's Series A funding was led by QED Investors, with participation from Andreessen Horowitz, SYSTEMIQ, Wireframe Ventures, Yard Ventures and Abstract Ventures, according to the startup.
Why It Matters
ESG and sustainable investing is a rapidly-growing investment space. Investors poured $1.4 billion into ESG funds in January 2018, 2 1/2 times as much as they invested in January 2017, according to Morningstar.
Startups like OpenInvest that offer individuals and advisors tools to more easily invest in socially conscious themes have the potential to accelerate these inflows.
“OpenInvest is building the wealth management platform of the future,” Conor Murray, the company's co-founder and chief executive officer, said in a press release. “We put advisors and clients in the driver’s seat, while replacing layers of intermediation beneath them who traditionally blocked transparency and control.”
“Socially responsible investing is one of the fastest-growing segments of equities management,” Greg Mazanec, partner at QED, said in a press release.
“Early on, OpenInvest recognized the need for an efficient way to personalize 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 said it plans to use the Series A funds to expand into new customer segments and reach a $23-trillion market opportunity.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Your update on what’s going on in the Fintech space. Keep up-to-date with news, valuations, mergers, funding, and events. Sign up today!