28 Sep, 2017, 08:35 ET
PALO ALTO, Calif., Sept. 28, 2017 /PRNewswire/ -- Stockpile, a brokerage popular with millennials that is pioneering fractional share stock investing, announced today that it has raised $30 million in Series B funding led by Fidelity backed Eight Roads Ventures, with participation by Mayfield, Arbor Ventures, Hanna Ventures, Wang Ventures, and others.
"We're on a mission to make it simple for everyone – especially young, first-time investors – to save and invest for their future," said Avi Lele, Stockpile's founder and CEO. "Fractional shares make market investing fun, easy, and personal. Even someone with only a few dollars can buy a piece of a favorite brand like Amazon or Alphabet, which are currently trading close to $1000 a share."
This latest investment brings the total raised by Stockpile to more than $45 million. Mayfield led Stockpile's $15 million Series A in October 2015, with participation by Arbor Ventures, Stanford University, and actor Ashton Kutcher. Stockpile will use the new funds to bring stock investing to more millennial customers and expand its unique features, Lele said.
Stockpile customers can download the iPhone or Android app or visit stockpile.com to open a free account for themselves or anyone in their family, including children under 18. They can buy individual stocks or ETFs at 99 cents a trade, set up an automatic investment plan, track their investments, learn about stock investing through free mini-lessons, or help others get started by purchasing e-gifts or physical gift cards redeemable for stock. Two-thirds of Stockpile's customers are under the age of 35.
"Stockpile has had tremendous success in attracting the next generation of investors," said David Milstein of Eight Roads, who joins Stockpile's board as part of the Series B investment. "Their innovative approach takes the mystery out of stock investing and opens up access to all. They have put the stock market on a gift card."
Since its retail launch in 2015, Stockpile has spurred a large ecosystem of partners who see this as the next billion-dollar category of gift cards, and not just on retail gift card racks. Verizon and FIS, the banking industry technology services provider, are among a growing number of Fortune 500 brands offering Stockpile gift cards as employee or customer incentives.
Eighty-six percent of American adults have never owned an individual stock, and 80% of stock is owned by the wealthiest 10%. Stockpile was founded to give everyone, including millennials, kids, and teens, an easy and affordable way to start investing for their future. Customers can open brokerage accounts and purchase fractional shares with as little as $5, making it possible for anyone to own favorite brands like Amazon, Apple, Alphabet, Disney, Nike, Tesla or 1,000 other stocks and ETFs. Stockpile gift cards are available online, at major retail chains such as Target, Kroger, Office Depot, Safeway and Staples, and through major rewards, incentives, and benefits programs. www.stockpile.com
About Eight Roads Ventures
Eight Roads Ventures backs technology entrepreneurs with aspirations for greatness. By combining a collaborative approach with the strength and resources of the Fidelity network and a 50-year history of investing, Eight Roads helps companies across the globe accelerate their growth and become leaders in their field. A strong track record includes investments in Alibaba, Appsflyer, CloudByte, Cúram (IBM), InnoGames, Made.com, Manthan Systems, Metaps, NewBay (RIM) and Treatwell (Recruit). Eight Roads Ventures is the proprietary investment arm of Fidelity International Limited (FIL). www.eightroads.com
Pitch Public Relations
Share this article