Fintech startups see opportunity in retail investing boom - Business Insider

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Fintech startups and investors have spotted an opportunity in the COVID-19 retail investing renaissance

that if individuals could buy stocks on the first day of trading they would make a 2% gain on average. "We're seeing a retail renaissance," Vinoth Jayakumar, partner at Draper Esprit, told Business Insider. "Technology enables access and minimizes risk. Retail is getting to a place that it wasn't before, we are now at a key inflection point."

One option to improve that is to bundle lots of little retail orders into a single sizeable offer, the pitch offered by London fintech PrimaryBid, which"Retail investors want to connect fully to public markets but never had an efficient way to do so," said Anand Sambasivan, PrimaryBid CEO. "Markets themselves are incredibly fair, but access to them is unfair and this is the issue we are fixing.

Retail investing has seen major increases in recent years with the success of Robinhood in the US during the pandemic demonstrating that the access gap to public markets is shrinking.but companies like Stash, Freetrade, and Revolut have brought trading options to the UK alongside existing platforms like eToro.

 

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