Founded by Antonio Banda in 2014, Feelcapital is the first Spanish regulated robo-advisor. It individually analyzes each user’s financial profile, allocating their money in mutual funds.
It uses four quadratic chained algorithms created by Feelcapital to create a unique portfolio for each client. These algorithms evaluate every portfolio daily, rebalancing each and every one when needed. This online tool allows anyone to invest their money based on their unique risk profile.
The sign-up process is simple, users must answer ten very simple questions that will not take more than three minutes. Based on these answers each client is given a risk tolerance profile, expected return and investment time frame.
The company stands out due to being a real robo-advisor, it uses technology applied to the economic models in order to individualize investment, unlike their competitors that are discretionary portfolio managers. This is because every investor is different and therefore the risk tolerance of every client is also different.
The company spotted the need for investment advice that was tailored to each investor. The company has won awards such as the first robo-advisor approved by the CNMV (Spanish Regulator) in 2014.
INVESTMENTS AND TECHNOLOGY
The technology is based on a solid mathematic calculation that allows the company to obtain reliable results in order to advise its clients securely via investment funds.
The calculation is carried out using four interrelated quadratic algorithms (risk tolerance, investment amount, type of asset, and suitable funds).
The company’s business model is providing clients continuous advice for a monthly fee of €15 or an annual fee of €150. The company currently operates in Spain and Greece.
The company was launched with €2.5 million and is now on its eighth funding round. Its investors include 50 retail investors who have participated in different rounds.
The company’s aim for the future is to launch a new robo-advisor model with a very clear approach to retail investors.