Invstr, a UK-based fintech company, has raised $20 million in a funding round led by Azevedo Family Capital and supported by existing investors. The company plans to use the funds to expand its financial education platform and reach more users around the world.
Founded in 2013 by Kerim Derhalli, a former executive at Deutsche Bank and JPMorgan, Invstr aims to democratize finance by providing accessible and engaging financial education to individuals of all backgrounds. The company’s platform includes a range of tools and resources, such as investment games, news articles, and educational content, designed to help users learn about investing and personal finance.
The need for financial education
Financial literacy is a critical skill that can have a significant impact on an individual’s financial well-being. However, many people lack the knowledge and resources needed to make informed financial decisions. According to a survey conducted by the Financial Industry Regulatory Authority (FINRA), only 34% of Americans were able to correctly answer five basic financial literacy questions.
The lack of financial education can have serious consequences, such as high levels of debt, poor credit scores, and inadequate retirement savings. In addition, it can contribute to economic inequality by limiting access to financial opportunities and perpetuating wealth disparities.
Invstr’s approach to financial education
Invstr’s platform is designed to make financial education accessible and engaging for users of all ages and backgrounds. The company’s investment games, for example, allow users to practice investing in a risk-free environment, while its news articles and educational content provide valuable insights into the world of finance.
In addition, Invstr’s platform is designed to be social and interactive, allowing users to connect with other investors and share their experiences. This approach helps to create a sense of community and support, which can be especially valuable for individuals who are new to investing.
The benefits of financial education
Financial education can have a range of benefits for individuals and society as a whole. For individuals, it can help to improve financial well-being by providing the knowledge and skills needed to make informed financial decisions. This can lead to better credit scores, lower levels of debt, and increased savings and investments.
In addition, financial education can help to promote economic equality by providing individuals with the tools and resources needed to access financial opportunities. This can help to reduce wealth disparities and promote social mobility.
For society as a whole, financial education can have a range of benefits, such as increased economic stability and growth. By promoting financial literacy and responsible financial behavior, financial education can help to prevent financial crises and promote sustainable economic development.
The future of Invstr
With the support of its investors, Invstr is well-positioned to expand its platform and reach more users around the world. The company plans to use the funds to develop new features and tools, such as personalized investment recommendations and advanced analytics.
In addition, Invstr plans to expand its reach by partnering with schools, universities, and other organizations to provide financial education to students and young adults. This approach can help to promote financial literacy at an early age and provide individuals with the knowledge and skills needed to make informed financial decisions throughout their lives.
Invstr’s $20 million funding round is a significant milestone for the company and a testament to the importance of financial education. By providing accessible and engaging financial education to individuals of all backgrounds, Invstr is helping to promote financial literacy and improve financial well-being around the world. With its innovative platform and commitment to social responsibility, Invstr is poised for continued growth and success in the years ahead.