You don’t have to be rich to be an international investor. That’s the motto from Brazilian app Sprout. With the help of a social media approach, the startup wants to make it easier for Latin Americans to invest in the US stock market.
The startup offers investment options starting at $ 1 in more than 4,000 American stocks, funds, and ETFs. “You don’t have to be rich to invest”, says Sprout co-founder and CEO Ruben Guerrero. The service is free of brokerage charges or account maintenance fees.
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The concept has yet to be proven, but it has already convinced investors. This Monday (20), Sprout raised a BRL 30 million round to boost the start of its operations in Latin America.
Led by Y Combinator, the round has the participation of companies such as Public.com, Sound Ventures, Liquid2, among others.
Sprout: social media platform
The company’s mission is to bring relief for two main pain points of first-timer investors: access and unfamiliarity. To solve the second one, the app will rely on its social features.
According to Guerrero, the platform will connect users for discussions on stocks and markets. The users can share tips about businesses tackling issues of mutual interest. For instance: invest in companies developing self-driving cars or space startups.
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Sprout has a team of analysts sharing relevant news about US market for its users.
To Guerrero, interaction and discussion foster knowledge and even the market benefits from it. “By allowing users to track each other’s behavior and share ideas about where to invest and not to invest, awareness on the subject is raised,” says Sprout’s CEO.
For now, the startup offers its services only to invited users and has a waiting list on its website. In the coming months, people from all over Latin America will be able to open a free account that will allow access to different plan options.