Indonesia-based social network for stock market investors, Stockbit, announced Tuesday that it has raised a pre-Series A round of investment from 500 Startups and other existing backers, including Ideosource and Braavos Ventures.
The funding, which is of an undisclosed sum, will be used for general business expansion. Stockbit has been in development since last year and will become available on iOS and Android apps soon.
Commenting on the investment, 500 Startups Partner Vishal Harnal said: “What Stockbit is building has the potential to jumpstart stock market investing in Indonesia. They have a clear advantage over any competition in the market as Stockbit is already the largest and most active community of stock traders in the country.”
Stockbit claims to “empowers anyone investing in the stock markets to effortlessly follow the trades made by top performing investors.”
It describes itself as a company built on the philosophy of the sharing economy. Its goal is to minimize major pain points in the journey of investors through a number of ways.
“Our proposition is simple. Just copy, let the best do the rest,” Wellson Lo, Stockbit CEO and co-founder, said in a statement to DEALSTREETASIA.
Through the Stockbit mobile app, users will be able to view other users’ portfolio and their performances. With a touch of a button, users can allocate their desired sum of money to copy other experienced users’ portfolio. Any changes made on the leader’s portfolio will be automatically reflected in the followers portfolio in real time.
“This allows people to avoid the steep learning curve and tedious stock picking analysis required in capital market investing,” the Stockbit team said.
Hence, it plugs the gap in education, experience and technical resources that most casual stock market investors lack by allowing them to copy the trades of those more proficient and successful than them, the company added.
Public participation in the stock market is extremely underrepresented in Indonesia, with less than 0.3 percent of the adult population have a stock trading account. In Singapore, it’s 39 percent and more than 20 percent in China.
The app also claims to correct the misalignment of interest with the brokerages who encourage clients to trade frequently despite trading losses, to profit from trading fees.
Stockbit was created by two friends who met in Melbourne. Wellson comes from a finance background and previously worked for KPMG Singapore, while co-founder and CTO Johny Susanto is a full-stack engineer. His experience with both front and back-end programming comes from nine years of related work experience in Australia and Indonesia.
Stockbit monetizes through a freemium subscription model. The startup’s premium features are comparable to those of a Bloomberg Terminal, but at a fraction of the cost, it claimed.