Stacked Has Took A Successful Initiative By Bringing Passive Investing Tools With $35M Investment For Retail Crypto Traders
Stacked, a web-based platform that offers investment tools for retail investors interested in crypto has raised a $35 million Series A. The funding is led by Alameda Research, a crypto trading firm owned by FTX founder Sam Bankman-Fried. Bybit and BitDAO partner Mirana Ventures, Fidelity International Strategic Ventures, DRW Venture Capital, Alumni Ventures, and Jump Capital are other co-parties in the funding and Alameda.
Launched in April 2020, Stacked - the Chicago-based company raised a $1 million seed round in September 2020. The recent funding raised the total funding to “just shy of $40 million,” commented Joel Birch, co-founder, and CEO of Stacked.
Future Planning
The company is planning to double its employee base in 6-8 months and invest in user acquisition, growth, and marketing. The current employee base stands at 40. Stacked has already grown into its segment with no traditional marketing spend until the fundraiser.
The company has automated over $10 billion worth of transactions for tens of thousands of new investors in 2021, reveals the company. The company has secured status as a registered investment advisor (RIA) with the US Securities & Exchange Commission (SEC) for preparation to widen its product offerings, added the company source.
Birch said, “In the coming future, the company plans to continue evolving its platform away from automating strategies and offering an easy investment platform for offering structured products like risk-adjusted portfolios and curated investment advice to individuals based on the risk tolerance.”
However, SEC is yet to get approval for a crypto ETF for trading in the US products. Birch stated that the company’s product differs from those sorts of products available to all retail investors.
Stacked acts as the protector of a user’s existing crypto brokerage account and offers a variety of pre-built portfolios, known as ‘stacks’ based on a risk score it assigns to each user after they take a suitability assessment. The company partners with some of the most reputable global exchanges, including Coinbase, Binance, and FTX.
The core product doesn’t cost you anything. It allows users to manage portfolios across multiple crypto exchanges, auto-rebalance and compound their portfolios, and lend cryptocurrency through FTX’s exchange.
The company charges a nominal percentage fee on transactions in its two-sided open marketplace where traditional automated strategies are sold. The marketplace enables investors to use the exchange to buy strategies designed by well-known traders and influencers in the crypto space.
The company is soon going to introduce a new feature that allows users to copy any stock as a template and customize it.