# Covestor

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/covestor

- Industry: Internet
- Headquarters: Boston, US
- Website: www.covestor.com
- Total disclosed funding: $27M
- Latest round: Series B (Jun 13, 2013)
- Investors on record: 6

## About

Covestor Ltd operates an advanced robo-advisory platform that customizes low-cost investment portfolios, enabling individual investors in the US to manage their investments with a focus on ethical and sustainable choices.Covestor Ltd, founded in 2006, is based in Boston, US and offers a platform for automated investment management. In April 2015, it was acquired by Interactive Brokers Group, further integrating its services into larger financial ecosystems. The company has raised a total of USD 12.75 mn in funding through a Series B round, with notable investors including Amadeus Capital Partners, Bay Partners, Spark Capital, and Union Square Ventures. Covestor has completed 6 deals to date, with the most recent funding round occurring in April 2015. The current company valuation is USD 29.009 mn, and it is led by CEO Rahul Diddi.Covestor Ltd operates its robo-advisory platform under the name Interactive Advisors, which creates diversified, low-cost investment portfolios based on individual investor preferences. The platform guides users through a series of tailored questions to align their portfolio with personal financial goals and risk tolerance while emphasizing responsible investing. As a registered investment advisor, Interactive Advisors assists retail investors in navigating investment complexities while ensuring transparency and control. Clients can easily transition to an Interactive Brokers Account for more active trading options.Covestor Ltd generates revenue through asset management fees that range from 0.10% to 0.75% per year on client investments, without imposing trading commissions. The B2C model allows clients to subscribe to their robo-advisory service for portfolio management, where they can establish and manage investment accounts, investing in various predefined portfolios or creating custom strategies. Revenue is primarily derived from management fees associated with assets under advisement, reflecting the company's focus on cost-effective investment solutions.Following its acquisition by Interactive Brokers Group, Covestor Ltd aims to enhance its product offerings and reach new markets. The company is designing new products that will be launched to further improve user experience and investment management capabilities. Specific plans for geographic expansion are not detailed but may include increasing market presence within the US. The recent funding from the Series B round will be utilized to support these initiatives, helping Covestor to enhance its platform and broaden its service scope.

## Funding rounds

- Series B, Jun 13, 2013, $13M — Amadeus Capital Partners, Bay Partners, Union Square Ventures, Spark Capital
- Series A, Aug 31, 2011, $4M — Amadeus Capital Partners, Union Square Ventures, Spark Capital, Episode 1 Ventures
- Series A, Mar 5, 2010, $3.6M — Union Square Ventures, Spark Capital
- Series A, Apr 7, 2008, $6.3M — Amadeus Capital Partners, Union Square Ventures, Spark Capital, Betaworks Ventures Management

## Investors

- Amadeus Capital Partners (https://capitalatlas.ai/funds/amadeus-capital-partners) — Series A, Series B
- Union Square Ventures (https://capitalatlas.ai/funds/union-square-ventures) — Series A, Series B
- Spark Capital — Series A, Series B
- Betaworks Ventures Management (https://capitalatlas.ai/funds/betaworks-ventures-management) — Series A
- Episode 1 Ventures (https://capitalatlas.ai/funds/episode-1-ventures) — Series A
- Bay Partners (https://capitalatlas.ai/funds/bay-partners) — Series B