When female investors launched in 2019, it did so with the goal of creating a community where women who wanted to invest in the stock market, but didn’t know where to start, could gain knowledge and confident to jump in. Now its users will be able to do all that within the Female Invest platform.
The Copenhagen-based startup announced the acquisition of Danish fintech investment firm Gaia this week with plans to integrate its investment-focused trading platform into targeted companies. sustainability into your application. Gaia’s purchase price was not disclosed, but the startup raised a $3 million valuation, three months before the transaction, Female Invest told TechCrunch.
For Female Invest co-founder and partner Camilla Falkenberg, adding the ability to invest directly through Female Invest is a great next step for a subscription edtech platform.
“Since day one, we have always been focused on building the features and products our community demanded,” says Falkenberg. “And we get requests every day for the ability to trade directly through us.”
She added that she thinks the platform gets that request often because its users trust it. A recent survey of customers showed that 96% of them would trust Female Invest more than their bank.
Female Invest has spent the last year building the company in a way that makes trading easier. Falkenberg said that since raising a $4.5 million seed round last November, it has built an app, expanded its tech team, and raised an additional $3 million. la sponsor.
But when they met Gaia Investments in July, they realized that it could be more affordable and time-saving for Female Invest to partner with an existing trading platform than building their own.
“Gaia has a strong brand in Northern Europe and a strong focus on ethics and sustainable investing, which we also care about,” she said. “As the negotiations progressed, it became increasingly clear that it was a great move for us.”
The team at Gaia feels the same way, Mads Sverre Willumsen, co-founder and CTO told TechCrunch.
“We know Female Invest and witness the journey they have gone through over the past three years,” he said. “After we talked and saw that we were on the same page, the decision wasn’t that difficult.”
The two companies also share similar founding stories – both aspire to create an investment product that they feel is essential and nonexistent.
For Female Invest, it was 2019 when the founders realized that there were no good resources to teach women how to start investing. For Gaia, that’s when the mother of co-founder and CEO David Bentzon-Ehlers asked him in 2020 if there was a safe place to invest in sustainable companies, and he took it. discovered that the platform she was looking for did not yet exist.
While it’s not uncommon for startups to be acquired too soon — Gaia had just completed the TechStars accelerator a few months earlier — Sverre Willumsen said the transaction makes sense for Gaia because they more interested in expanding its reach. products rather than startup founders.
“I didn’t become a founder in the first place to be a founder,” he said. “I did it because it was an opportunity to make a lot of innovation and difference for people quickly.”
Existing Gaia users will be offloaded — with their funds returned in full — in the near future as the platform begins to integrate into Female Invest. Falkenberg said since then they have not had a specific launch date for Female Invest users, but that the ability to trade will launch first in the European Union and then the UK.
Consolidation of early-stage startups is on the rise this year, and as the fintech sector struggles with the uncertainty of 2022, it looks like some of these smaller companies will merge to avoid falling behind. I’m sure we’ll start seeing more of this title next year.
However, for Female Invest, the long-term plan, regardless of market conditions, is being worked on.
“Our vision was to create an extremely user-friendly and easy-to-navigate platform with a focus on sustainability to invest in the values that matter to them,” said Falkenberg. “We have a very loyal user base waiting for us to launch our next product, which is a great starting point.”