Stock Card Enables Individual Investors to Gain Higher Returns with More Digestible Insights
Company Overview
Brief: Stock Card is a platform that makes investment research digestible and easily understandable for investors. Stock Card’s tools help investors eliminate reactionary and emotional decisions and enables individual investors to generate higher returns. Stock Card is growing through partnerships and has more than 216% annual user growth and 126% annual revenue growth.
Key People: Founder and CEO Hoda Mehr (Symantec, Aimia, Sony) Technical Lead and Project Manager Ravi Muda (Founder and CEO of Seffcon Solutions which is used as Stock Card’s engineering team)
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Terms
Security Type: SAFE
Valuation: $10,000,000
Amount Raised: $23,010
Minimum Investment: $150
Takeaway
Here's what I like: If you’re reading this email, you already know how much I value education and accessibility when it comes to investing. Stock Card makes investment research more digestible and gives you instant feedback on how you’re building your portfolio over time — which is half the battle when it comes to resposnible investing.
Stock Card is incredibly well designed and does a fantastic job helping investors better understand what they’re putting their money into. And, despite current market conditions, self-directed investing isn’t going anywhere.
Plus, the business model is simple and effective (nearly $200k in revenue), $24.99/mo for individual users and upwards of $1,000/mo for business API licenses.
Here's what I don't love: The two biggest concerns I have with Stock Card are time and product defensability. I say time because I do not foresee retail investor appetite rebounding any time soon which means Stock Card will need to raise enough money to survive the economic headwinds — in an equally cold VC climate.
And, while I truly love the product experience, I do wonder how hard it would be for Robinhood or M1 Finance to replicate what Stock Card does. Obviously, I understand that most investing platforms live on trade volume, but I think over time the top apps will pivot towards investor success vs volume if they wish to maintain AUM.
None of this is to say Stock Card cannot succeed or exit to the aforementioned, but it certainly carries some uncertain risk.
Who should invest and why: For starters, if you find these Pitch Reviews valuable or are subscribe to Kingscrowd (or any other asset ratings type platform), Stock Card is probably a great fit — especially with such favorable investment terms.
Beyond investor-fit, I personally enjoy supporting founders and startups that have a better than average shot of success, while at the same time actually contributing positively to the overall market.
As always, startup investing is super high-risk, and anything can happen. Don't invest anything you can't afford to lose.
Invest in Stock Card here 👉 Term Sheet
DM’s open on Twitter & IG 🤳 @kitun.
Thank you, Scott! This is an excellent review. You have a great way of simplifying!
I wanted to address your two concerns:
1) Retail investors’ current sentiment. This is not a new phenomenon. Every industry has its cyclicality. That's one of the reasons we recently launched our B2B API product. It's a lot more reliable and has cash-generating power. Businesses don't stop paying for insight vendors because the market is down. Once Stock Card is a part of their product, it is pretty sticky. We already have seen great traction and early interest with several trials on our B2B API product. Stay tuned for those.
2) Possibility of Robinhood replicating our success. You eluded to it. There is a significant business model barrier for a brokerage that makes money from order flow to encourage better investing with more diligence. Enabling fact-based and less emotional decisions means cutting their revenue.
Also, this doesn't mean we will stop innovating. Like Elon Musk says, the only way to stay ahead is to keep innovating and disrupting yourself. We have a crazy roadmap a bead of us. From browser extension that takes Stock Card to any news website or brokerage to creator-branded Indexes and ETFs, we will keep innovating to solve retail investors' problems.
Thank you for the review, and we just hit out min investment raise on Republic.