Robo-advisor Ignition Wealth has raised Aus$1m ($762,000) in its first round of venture funding. The capital for the Sydney-based startup comes from financial planning expert Barry Lambert.
Lambert, who sold his network of independent financial planners to Commonwealth Banks for Aus$373m ($284m) in 2011, will take a minority stake in the company as a result of the deal.
Ignition Wealth targets finance professional and financial institutions, using algorithms to design and implement portfolios to clients that are automatically updated.
“I have long believed that the only thing guaranteed in financial advice is the cost. With the ever increasing burden of compliance it is essential that the industry reduces the cost of advice so that it can be made available to the majority rather than the few,” said Lambert.
Launched in 2008, the company this year became the first robo-based financial advisor to receive a licence in Australia.
The company says the capital will go towards further developing its product, as well as expanding its marketing efforts and team.
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