Afraid to trade stocks? Titan invests algorithmically for you – TechCrunch


Titan could end the FOMO scholarship. The app picks the top 20 stocks by pulling the best hedge fund data, adds a few shorts based on your personal risk profile, and puts your money to work. Don’t worry about market fluctuations or constantly rebalance your portfolio. You don’t have to do anything, but you can get smarter about stocks with its built-in explanations and research reports. Titan wants to be the easiest way to invest in stocks for a mobile generation who wants an affordable coach to guide them through the market themselves.

“Our goal is to take things that are not accessible [in wealth management] and make them accessible, starting with hedge funds, ”explains Titan co-founder Joe Percoco. This potential to democratize one of the keys to financial mobility has earned Titan a $ 2.5 million funding round from Y Combinator co-founder Paul Graham, President Sam Altman and partners, including creator of Gmail, Paul Bucheit. The rest of the capital comes from Maverick Ventures, BoxGroup and Liquid2 Ventures.

Titan that’s where investing meets virality, ”says Graham. “These are two very powerful forces.” Since TechCrunch announced the news of Titan’s launch in August, it has doubled its assets under management to $ 20 million and has hired its first non-founding engineer.

Now it’s launching in-app educational videos so stock dummies can get up to speed if they want to understand where their money is going amid a whirlwind of financial news. “There are so many different titles telling so many different stories,” Percoco tells me. “Everyone is looking for explanations in a voice they trust. An “ETF” cannot respond. Sometimes a human face is better than the writing. A video can really help people make choices. Here’s his two-minute video of Facebook’s second quarter earnings from a few months ago, explaining why the stock price slumped 25%:

Percoco and Clayton Gardner met on their first day at Wharton Business School, while their third co-founder was getting a hedge fund patent and studying computer science at Stanford. They went on to work in hedge funds and private equity firms like Goldman Sachs, but were fed up with growing the fortunes of the already wealthy.

So they launched Titan to invent a mobile, modern version of BlackRock, the investment giant founded in the 1980s. Titan uses public disclosures from hedge funds to find consensus around the 20 best-performing stocks. With as little as $ 1,000, users can let Titan manage their investments automatically for a 1% commission on assets. Users provide information on their bet size and Titan personalizes their portfolio with more or less conservative shorts to cover their bets.

Titan’s simplicity combined with the sense of participation could help him grow taller quickly. It falls between do-it-yourself options like Robinhood or E * Trade, where you’re essentially on your own, and totally passive options like Wealthfront and Betterment, where you’re so separated from your wallet that you’re not. . learning. Managed hedge funds and other active investment vehicles like BlackRock with a human advisor may require a minimum investment of $ 100,000 which is too high for millennials.

“Even the best hedge fund in the world will only send you a PDF every 90 days,” says Percoco. But Titan doesn’t want you to nervously check your wallet all the time. “Our median user checks the app once a day. It seems like a healthy balance between consciousness and reason. He believes his education and informative push notifications are worth the investment and higher fees than Wealthfront’s fees.

Essentially, Titan is a stock trading autopilot merged with a flight simulator so you can improve your financial skills without having to worry about a crash. Percoco tells me that the sense of accomplishment that comes with it is why customers say they tell their friends about Titan. “When I invest, I look for companies that grow quickly and have a huge positive impact on the world. Titan is one of those companies, ”said investor Altman. “I think they could improve the financial well-being of an entire generation.”


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