OpenInvest

OpenInvest

Investing tool and Public Benefit Corporation that emphasizes social responsibility.

OpenInvest is a San Francisco-based financial technology startup company backed by Y Combinator and Andreessen Horowitz. It participated in the YC S15 cohort of Y Combinator and raised an estimated $13,770,000.

The platform, OpenInvest, was initially launched to assist registered investment advisors (RIA) in tailoring their portfolios to align with their investors' personal values. For example, if investors were not in support or favor of the oil industry, oil-related companies would be screened out. If the investors were overweighted in green energy companies, any additional green energy companies would be screened out. The software is capable of executing these tasks while keeping inventory on the overall market. Investing in line with personal values is referred to as "socially responsible investing."

The OpenInvest Portfolio Diagnosis tool allows investors to quantify and visualize the impact of their investments, which is part of the company's social, economic, and governance (ESG) solution. OpenInvest was designed to meet the investor's needs and understand the translation of their investments goals. For instance, if the investor puts money into green energy, the financial amount can then be translated to the number of trees planted or saved due to that financial investment. This methodology allows investors to quantify and understand their impact on the world.

Portfolio Diagnosis Tool

The Portfolio Diagnosis Tool (PDT) comprises four main features to help RIAs discuss ESG impact with their clients. The tool is offered as a Subscription-as-a-Service (SaaS) package. RIAs can use the PDT quarterly with the client and discuss impact reporting. The quarterly data can also be compared to backdated historical information.

Comprehensive data

The OpenInvest platform analyzes billions of data points from industry experts to calculate impact. Some included sources are the Carbon Disclosure Project, in-house researching, and public financial reports.

Detailed impact metrics

Detailed impact metrics are used to signify specific markers and insights to the investor. Unlike legacy systems that give an overall ESG score, PDT breaks the impact down into several indicators within a specific cause; allowing the investor to decide what is more important to them.

Values-base dynamic investing

Values-based dynamic investing is the ability to invest in companies that meet expectations of the investor. This allows investors to visualize which companies support, for example, LGBTQ+ rights, gender equality, and ethical supply chains. It also allows investors to divest away from companies that don't support likeminded causes and beliefs like fossil fuels and deforestation.

Registered investment advisors (RIAs) in the loop

The product is designed for investors who are looking to be guided through the investment process and is not a self-serve platform akin to Robinhood. The software also allows RIAs to approach investing from a different angle that is more personalized for the investor and client.

Timeline

November 10, 2020

As America Honors Veterans, OpenInvest launches an ESG cause to spotlight the top 10 market leaders that best Employ and support soldiers.

April 16, 2020

OpenInvest closes $10.5 Million Series A1 strategic financing round.

OpenInvest, the tech-enabled asset manager that provides customization, direct indexing, and ESG investing at scale, announced it has completed a $10.5 million Series A1 round of strategic financing. QED Investors led the investment round with participation from existing investor SystemIQ and two additional investors:

September 2017

OpenInvest secures $3.25 million in seed funding to make investing a force for corporate engagement and social change; Round led by Andreessen Horowitz.

OpenInvest announced today that it raised $3.25 million in seed funding. The round was led by Andreessen Horowitz with participation from Abstract Ventures, Wireframe Ventures, and SV2.

Funding rounds

Funding round
Funding type
Funding round amount (USD)
Funding round date
Investment
OpenInvest funding round, May 2017
3,250,000
May 2017
5 Results
Results per page:
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People

Name
Role
LinkedIn

Anna Wascher

Investor

Ben Lynett

Investor

Conor Murray

CEO and Co-founder

Jane Bulnes-Fowles

Advisor

Joshua Levin

Co-founder and CSO

Phillip Wei

Co-founder

Raaid Ahmad

Advisor

Richard Ballard

Investor

Robin Bot-Miller

Investor

Seth Weinstein

Investor

Further reading

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Author
Link
Type
Date

Documentaries, videos and podcasts

Title
Date
Link

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
August 20, 2020
WebWire
OpenInvest, the leading values-based financial technology company, today released new names of companies that qualify for its Racial Justice Cause. Launched over a year ago, the Racial Justice Cause gives visibility into which corporations are contributing to socio-economic equality while giving investors the ability to invest or divest from those that don't. "35 Ventures is proud to support OpenInvest in their pursuit to tackle socio-economic inequality through the development of a soc...
July 15, 2020
WebWire
OpenInvest, the tech-enabled asset manager that provides dynamic custom indexing and ESG engagement at scale, announced today it is joining with Nasdaq (Nasdaq: NDAQ) to provide automated custom direct indexing solutions on Nasdaq indexes to market participants nationwide. "Advisors can now pull out a tablet in a client meeting, select Nasdaq indexes, customize according to the client's values and personal tax situation, and hit GO. Our work with Nasdaq enables advisors to use the OpenIn...

References

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