We analyse the investment made by Rothschild - one of the most important financial advisory groups in the sector - in the startup Exo Investing, which to date amounts to €16.5m.
We analyse the investment made by Rothschild - one of the most important financial advisory groups in the sector - in the startup Exo Investing, which to date amounts to €16.5m.
Exo Investing, led by Lennart Asshoff, was founded with the aim of offering personalised financial services to private investors. Until recently, only privileged investors and financial institutions enjoyed services such as portfolio selection, daily risk management and continuous monitoring. For this reason, Exo Investing was born out of a desire to provide individuals with access to affordable and personalised investment experiences.
In order to offer this service, Exo Investing takes advantage of technological developments and carries out a detailed study of each client. In this way, it sets itself apart from other investment platforms such as "robo-advisors", by creating personalised investment portfolios for each user instead of using model portfolios. As a result, each investor can select the areas in which they wish to emphasise their investment, optimising their portfolio based on their preferences and the client's risk.
Exo's differentiating value is that it moves away from the traditional model of static products and pre-defined portfolios, offering an individualised service based on your investment preferences. Each portfolio is monitored daily and adjusted according to the individual's risk preferences and changing market conditions. In this way, each client's long-term risk is actively managed on a daily basis.
To do this, Exo Investing performs hundreds of calculations and analyses the data of each ETF (Exchange-Traded Fund) or exchange-traded fund by parameters on a daily basis. Thanks to this method, the nature of each scenario can be assessed more efficiently and rational decisions can be made.
Benjamin and Ariane de Rothschild have backed Exo Investing with their €16.5M private investment, placing Rothchild at the forefront of the Artificial Intelligence race that financial sector companies are increasingly vying for. Exo, based in Madrid and London, is currently the only platform with active risk management that adapts portfolios to market conditions on a daily basis using artificial intelligence algorithms, making the startup one of the best technological alternatives for active investment.
Rothschild's investment was made jointly with the founders of Madrid-based ETS Asset Management Factory and the former directors of La Compagnie Benjamin de Rothschild SA, Daniel Treves and Hugo Ferreira, who is also chairman of Exo Investing.
The launch of Exo Investing earlier this year has given private investors access, for the first time, to the same sophisticated risk management and quantitative investment technology developed over 30 years by ETS that was previously only available to institutional investors and high net worth clients. One could say that Exo has "democratised" the investment world. The motivation for this transaction can be understood as opening the door for thousands of private investors to enjoy the benefits of quantitative investing.
Lennart Asshoff, CEO of Exo Investif, says that Rothschild's financial support paves the way for Exo to continue developing this pioneering solution for the market. retailThis level of portfolio management has never before been available to this type of investor.
Another advantage of investing in Exo is due to the company's current state of growth, most of Exo Investing's staff is located in Madrid and after its launch in the UK the startup is in the process of expanding to other countries in continental Europe. Its aim is to enable more people to take advantage of its services, making personalised investment possible.
The following table shows the five largest investments made last year. All of them are transactions linking artificial intelligence and the financial sector.
| Company | Description | Country | Total investment | Date |
|---|---|---|---|---|
| Coinbase | Coinbase is a digital currency service that allows traders to buy and sell bitcoin. | United States | $225.3M | 10/09/2017 |
| Blockchain | Blockchain is a bitcoin platform that enables secure transactions between all consumers and businesses around the world. | United Kingdom | $70.6M | 22/06/2017 |
| Huobi | Huobi is a global provider of blockchain asset-based financial services. | China | $2M | 1/10/2017 |
| Ripple | Ripple provides an experience for sending money globally online using blockchain. | United States | $93.6M | 6/04/2017 |
| FreightWaves | FreightWaves is a data provider for commodity markets. | United States | $18.4M | 12/06/2018 |
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