Friday, May 9, 2014

Deal of the Day: Motif Investing

"Stop picking stocks.  Start picking ideas."
It may seem that this is an unusual post coming from me, but actually, I find this company and its latest headline news very interesting.  Let me first briefly introduce this idea of investing by motifs:

Based in San Mateo, California, Motif Investing was established by Tariq Hilaly and Hardeep Walia in 2010.  Backed by Foundation Capital, Norwest Venture Partners, Ignition Partners, and Goldman Sachs, Motif Investing escapes the conventional method of investing in the stock market.  Their online brokerage platform lets you invest in a collection of companies grouped together as an idea, called Motifs.  Examples of Professional Motifs include 3D Printing (one year return ↑ 5.8%), Biotech Breakthroughs (↑ 29.1%), Black Gold (↑ 10.7%), Chinese Solar (↑ 95.8%), Cleantech Everywhere (↑ 41.4%), Modern Warfare (↑ 49.9%), Online Gaming World (↑ 40.3%), and even Seven Deadly Sins (↑ 22.1% - because "Even In A Weak Economy, Bad Habits Remain").  There is also the freedom of building a new or customizing a current Motif to try and beat the benchmark.  If that is too much of a numbers game, there is yet another option of choosing Community Created Motifs.  So what is the price of investing in a portfolio of up to 30 stocks?  $250 minimum per Motif plus $9.95 commission.

Since their founding four years ago, Motif Investing has caught the attention of major media outlets such as The New York Times, Wall Street Journal., Bloomberg Television, CNBC, The Motley Fool, and Forbes.  Yesterday, they made another headline news.  Motif Investing has raised $35 million in their Series D funding from Wicklow Capital, Balderton Capital, and the nation's largest bank: JPMorgan Chase, totaling seven prominent backers and $86 million in four funding rounds.

What this means for Motif Investing:
  1. A huge vote of confidence and boost in credibility
  2. Exposure to Chase's enormous client base
  3. Technological advancement into a wealth management platform
  4. Beginning of global expansion (keep reading)
Board of directors include former SEC Chairman Arthur Levitt and Sallie Krawcheck, former CEO of Merrill Lynch (Bank of America) and Smith Barney (Citigroup).  With the new venture capital funding to include UK-based Balderton Capital, general partner Tim Bunting will help Motif Investing to expand its operations to the United Kingdom and Europe.  Bunting has also been added as a board advisor.

Furthermore, the funding will aid in the launch of a new wealth management product for its retail investors and advisors.  The Motif Advisor Platform will allow financial advisors to manage the accounts of their clients under one interface for a flat-rate of $20 to $50, dependent on asset sizes.

There is no better time to begin diversifying your stock portfolio and chase that next big idea with Motif Investing.  Get $100 instantly when you open a new account and place a motif trade.  Simply sign up using my personalized link, plus you will be helping me earn $100 too!

Online stocks broker: Motif Investing
Hardeep Walia announcing latest funding found on CNBC:

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