Making Sense of Share Advice by Identifying Successful Share Tipsters & Analysts to Trust, Follow & Copy.
Business overview
| Location | London & N Wales, United Kingdom |
|---|---|
| Social media | |
| Website | www.stockomendation.com |
| Sectors | Data & Analytics Digital Mixed B2B/B2C |
| Company number | 08190467 |
| Incorporation date | 24 Aug 2012 |
Idea
Introduction
Trip Advisor for Travel, Money Supermarket for Insurance, and now Stockomendation for Stock Markets; identifying the winning Share Tipsters and Analysts to follow to help make investing more successful.
Investors are bombarded with trading ideas so we analyse Share Tip data to enable investors to easily find the successful Share Tipsters and Analysts to trust, follow and invest behind. We believe that this in turn increases engagement and trading activity on trading platforms.
Stockomendation has two main products, a multi award-winning FINTECH50 platform to collate, aggregate, track and analyse the tips of Share Tipsters and Analysts from newspapers, magazines, researchers, brokers and websites.
The company has also gamified the Share Tip making process by building a unique Tipster Game to find the best amateurs Share Tipsters for the world's stock markets. This way members can confidently follow and trust track records of success.
The platform is live in the UK and aiming to launch in the USA, EU and Asia.
Intended impact
Paul Roberts, the Founder/CEO has his track record of success clearly visible on LinkedIn; yet stock market investors have not been able to find the track records of success for Stock Tipsters and Analysts who give advice... Until now!
Stockomendation addresses this problem, enabling investors to see the track records of those we track, giving advice to buy or sell shares. A simple, yet highly effective concept -"follow those who have a track record of success".
Awarded a UK Gov't Innovation Grant, Stockomendation partners with a leading UK University and has created a sophisticated Big Data platform using AI methodologies to analyse stock tips, aiming to identify the tipsters and analysts most likely to outperform markets, so investors can follow and invest behind those with a great track record of achievement.
Millions of individual global stock market investors can ultimately benefit from the platform with financial institutions able to partner with us to help access their target market to hopefully stimulate trading volumes, clients and subscribers.
Substantial accomplishments to date
"The business model has been validated through a user base of circa 7,500 members and also signing a major UK Financial Services PLC and an International Financial Data and Trading Platform client." Paul Roberts, Founder and CEO.
Recent Highlights:.
- Over 40,000 stock tips and 300 tipsters and analysts already tracked in the UK.
- Highly experienced management team with track records of successful exits.
- The Development Bank of Wales Technology Fund recently invested £200k towards this round.
- Awarded a substantial £100k Innovate UK Government Grant for the development of the Stockomendation platform in conjunction with a Knowledge Transfer Partnership (KTP) with Bangor University Business School (Ranked Top 25 Globally for Banking Research).
- An international distribution agreement signed and deployed with WebFG an established global financial data business with a significant number of major banks/brokers and large UK/EU Investor Portals.
- Multi award-winning platform, including the coveted FINTECH 50 status, as one of hottest FINTECH platforms with potential in Europe.
- Marketing Partnership has been deployed with major UK broker Self Trade, owned by Equiniti PLC.
- Marketing Partnership deployed with VOX Markets a significant retail investor content portal.
- Over £850k in funding has been raised to date.
- Major functionality upgrades and completion of The Tipster Game.
- Opportunities pipeline building in UK, USA, Canada and EU.
Monetisation strategy
Stockomendation deploys a multi-faceted revenue model which we believe minimises risk and maximises opportunity:
1. Membership Subscriptions and Premium Services (Planned)
- Advert free experience and greater functionality - £1.95 per month.
- Premium services e.g. detailed analytical tools - £30 per month.
2. Data Licensing, Partnerships, White Labelled Solutions
Custom built data feeds/widgets to be fully integrated as branded or non-branded content for financial businesses with large individual investor client bases. Set up and ongoing monthly fees.
3. Sponsorship and Advertising
Embedded targeted sponsorship and advertising in free parts of the website and email alerts system to the high value membership base.
4. The Tipster Game
Set up and ongoing monthly fees, sponsorship and advertising revenue, deploying The Game as a hosted service for financial media providers and online stockbrokers with large investors client bases.
Use of proceeds
We have recently completed the first tranche of this current raise, consisting of £320,000, of which £200,000 was invested by the Development Bank of Wales in return for x1 non-participating convertible preference shares. This means that Development Bank of Wales will receive back its investment before proceeds are distributed to other shareholders, unless it converts to ordinary shares and participates pro-rata alongside the other shareholders.
£70,000 of this raise occurred several months ago and was drawn down, hence it does not count towards the raise total and target as shown here in this campaign, but has been included in the pre-money valuation. All £320,000 has been received by the company.
We are delighted to offer a minimum of £100k of investment to this round for our Members firstly to invest in our growth story followed by Seedrs members that we will use to accelerate the business further.
Use of funds:
1. Sales and Marketing
- Launch new monetisation models.
- Accelerate B2C membership growth.
- Increase B2B Partnerships and White Labelling.
- Launch 'The Tipster Game'.
2. Recruitment
-1 x Front End UX Developer.
- 1 x Advertising Sales Executive.
- 1 x Head of Marketing.
- 1 x Data Researchers.
3. Expansion
- Data capture of European stock tips.
- Multi-lingual site to reach European B2C and B2B customers.
- Plan the growth to the USA, Canada and beyond.
- Increase data collection enabling expansion in the UK and into new markets.
4. Operations
- Accelerate platform development, sophistication and functionality.
- Further strengthen financial, legal and operations processes.
NOTICE
Please note, the company current has an outstanding directors loan of £62,643.46, which is repaid via monthly repayments of £1,000. Where free cash flow allows, the proceeds of this campaign will not be used towards the repayment of this loan.
Market
Target market
Stockomendation is designed for use by individual and institutional investors in stock markets globally. The platform is successfully deployed in the UK with 7,500 individual and 2 institutional deals already in place. We are aiming to expand into the EU, USA, Canada and Asia Pacific in 2019/20.
Individual Stock Market Investors need to know who to trust, who to follow, who are the winners and who to avoid when listening to advice to buy and sell shares. Stockomendation helps investors focus on the advice of the successful tipsters and brokers bringing clarity to the huge number of tips and recommendations in stock markets.
Banks, Financial Media Businesses, and Online Stock Brokers want more readers, members, clients and trades. Stockomendation connects them to their target investor audience acting as a new distribution and marketing resource.
Data outputs and platform content could be licensed in full, part, or white-labelled, with the aim of stimulating traffic and trading activity on their own platforms.
Characteristics of target market
In our view, we have seen that many investors are time poor and invest based on 'expert' advice and sentiment-driven comfort factors. Institutions are driven to increase trading activity on their platforms. These target markets are vast and we believe are growing, supported by:
- Demand by individual investors to trade, driven by technology and changes to pension regulation;
- Globalisation expanding access creating huge new markets for us;
- Banks, Financial Data/Media Businesses and Online Stockbrokers want to increase their clients/memberships and drive trading activity/traffic.
Size:
• 3.7 million UK trading accounts.
• 25% of US and 26% of Canadian households have a trading account.
• 31% of Australians own shares, and 65% of adults who trade go through a non-advice broker.
• China and India trading accounts are more than 100 million and growing very fast.
There are hundreds of millions of individual global stock market investors and thousands of global banks, brokers and financial media businesses.
Marketing strategy
A multi-faceted marketing approach has been adopted that targets both the individual member directly and also institutional businesses with large investor client bases through partnerships, data feeds and white labelling of Stockomendation services.
Individuals investors are targeted through normal marketing channels such as social media, PR, SEO, advertising and this will be accelerated with increased marketing spend.
Banks, Online Stockbrokers and Financial Data/Media businesses are typically targeted individually through our in-house and partner sales teams with a bespoke service designed for each target.
Stockomendation has already signed and deployed an international distribution deal for its service giving access to the relevant clients of a Financial Markets Data and Technology Provider that counts the world's largest banks and brokers as its own clients, covering millions of individual investors worldwide.
Competition strategy
To our knowledge, there are no UK, Asian or European competitors identified to date. Tip Ranks is identified as a potential competitor in the USA.
- We intend to retain a free membership tier to harvest a community with great functionality and premium service upgrades;
- We will remain complimentary for financial publishers and not competitive to them and drive traffic to them therefore acting as an effective free marketing resource for publishers to reach their target market;
- We continue to develop our platform to keep ahead of any new entrants. Our new services launching soon such as the Stock Tipster Game, that is unique to us, helps us to create a truly global membership base and new trading data and trends for analysis;
- We apply predictive analytics to the quantitative element of our Big Data, filtering out market noise using AI methodologies and have developed ‘StockoScores’ support additional value for our Company and partners.
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