Composer gets US$6 million to help retail investors adopt sophisticated trading strategies
Despite the market downturn, Composer has seen increased trading volume and AUM.
Based in Toronto Composerwhich offers an automated trading platform for retail investors, raised a $6 million seed extension led by Left Lane Capital of New York.
The all-equity round, which closed in August, was backed by a slew of existing US-based investors in First Round Capital, Alumni Ventures Group (AVG) Basecamp, Draft Ventures and Packy McCormick’s Not Boring Capital. The new capital brings Composer’s total venture capital funding to date to more than $11 million, from a group that also includes Toronto-based Golden Ventures.
While other stock trading apps like Robinhood saw their active users plummet during the market downturn, Composer claims to have seen an increase in customer demand.
Composer co-founder and COO Ananda Aisola told BetaKit that the startup plans to invest the funding in product development and grow its user base. According to Aisola, the seed extension has a higher valuation than Composer’s $4.25 million seed funding, which the company secured in May 2021. When asked if Composer’s latest round involved a secondary capital, Aisola did not respond.
Composer was founded in 2020 by Aisola, CEO Benjamin Rollert, and CTO Ronny Li, alumni of Toronto social food ordering app Ritual and Montreal workspace startup Breather.
Composer’s no-code platform enables non-professional individual investors – or retail investors – to adopt, design and deploy sophisticated hedge fund-like investment strategies previously inaccessible to those without time, ability to pay data costs and requirements. coding skills. Currently, the company’s offering is only available to users in the United States.
According to Composer, investing in current market conditions “requires hours of endless research and monitoring.” With its auto trading platform, Composer aims to simplify this process for retail investors.
RELATED: Breather, Ritual Alumni Seek to Ride the Retail Investing Wave with New Composer Automated Trading Platform
Composer was rolled out to open beta last year, amid a spike in retail investing popularity during COVID-19 and the recent bull market, fueled in part by the growth of investing communities on the social media platforms like Reddit.
As economic conditions changed and inflation rose, this wave gave way to what Rollert described as “one of the worst times in history for stocks and bonds.” Among this environmentRollert says investors have been forced to reevaluate their strategies and think about “how they can invest smarter in the future.”
While popular stock trading apps like Robinhood have seen their drop in active users During the market downturn, Composer claims to have seen an increase in client demand for its platform over the past few months with 400% growth in trading volume and 600% growth in AUM.
UPDATE (09/16/22): This story has been updated to note Composer’s responses.
Image courtesy of the composer.