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Contxto – Investing shouldn’t just be for the Gordon Geckos of the world. A number of startups are emerging to make asset management simpler, transparent, and more accessible. But for that, they do need other investors’ help.
A prime example is Brazilian brokerage platform Warren. Today (10), the fintech announced it closed R$120 million (~US$22.5 million) for its Series B round. The transaction’s lead was QED Investors who was joined by Kaszek Ventures, Chromo Invest, Ribbit, MELI Fund, WPA and Quartz.
The startup will use the funds for tech development as well as for launching new products. Likewise, Warren will be increasing its workforce within the next 12 months.
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Warren wants transparency
As traditional investment brokers would have it, they charge their customer a commission over every transaction they handle. Doesn’t sound too shabby right? Unfortunately for anyone who’s built up their portfolio, it quickly becomes clear that this payment system really saps at their earnings.
But fintech Warren has a different approach to the matter.
Entrepreneurs André Gusmão, Tito Gusmão, and Rodrigo Grundig created their investment brokerage platform in late 2014 and officially launched in 2017. The ultimate goal was and continues to be making the process of investing as transparent as possible.
- Related article: The Ultimate Guide to Venture Capital in Brazil 2020
So instead of charging a commission over every single trade deal that’s completed, the startup charges users just one administrative fee over the total amount invested per year. This shift brought QED Investors on board.
“We believe that wealth management in Brazil is currently undergoing a revolution. Investors already recognize the damage that high commissions do to their portfolios,” says Lauren Morton, Partner at QED.
“Warren has always focused on transparency and on the customer in an unprecedented way in the Brazilian market. We are excited.”
At the moment, the fintech has R$2 billion (~US$375 million) in assets under management but hopes to hit R$10 billion (~US$1.8 billion) by the end of next year.
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