Tony Hawk, a legendary professional skateboarder, is among the investors that participated in a $65 … [+] million Series C funding round for Public, an investing app.
Jordan Strauss/Invision/AP
Nearly three years ago, after working about a decade in the financial technology sector, Jannick Malling decided to branch out on his own. Malling was interested in making investing a more social and collaborative undertaking.
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And so, he became one of the co-founders of Public, an app that officially launched last September. Through Public, any adult living in the U.S. can link up their bank account and start buying and selling equities and exchange traded funds without paying any commissions. But more than that, they can be part of a social network where they can connect with other investors, share their trading ideas and insights and seek feedback, which is what Malling says differentiates Public from the other investing apps. The financial community has taken notice.
This morning, Public announced it has raised $65 million in a Series C funding round, just eight months after the company raised $15 million in a Series B round. The company has now raised a total of $90 million.
Accel, a Palo Alto, Calif., venture capital firm, led the most recent round, as it did with the Series A and B rounds. Other investors include Lakestar, a Zurich, Switzerland, venture capital firm; Greycroft, a New York venture capital firm; and Advancit Capital, a New York investment firm.
Tony Hawk, a legendary professional skateboarder, also participated in the latest round, as did Richard Parsons, a former chief executive at Time Warner and chairman at Citigroup, and the Chainsmokers, a production and DJ duo that invested through its Mantis venture capital fund. J.J. Watt, the Houston Texans’ defensive end, has also invested in Public, although he didn’t partake in the Series C round.
Public would not disclose what the latest round values the company at or how many users it has. But it claims that 40 percent of the people on the app are women and 90 percent are first-time investors, meaning they had not invested in the stock market until they opened a Public account.
“A lot of people have not been able to take advantage of the stock market until now,” Malling said. “Initially, we were like, ‘How do we build something that allows people to break through the fear and intimidation that exists in their minds?”
Mallick noted that Public has been able to attract users because of the app’s simple interface and ability for people to buy fractional shares of companies and invest as little as a dollar at a time. The social aspect is a boon, as well, allowing people to interact with people they know and even professional athletes such as Paul Rabil, a longtime pro lacrosse player and co-founder of the Premier Lacrosse League, and longtime investors such as Scott Galloway, an entrepreneur and New York University marketing professor who invested more than $1 million in Public earlier this year. And unlike message boards or other social networks that allow users to post anonymously, leading to vitriol, Public’s users must register using their real names and thus are unlikely to be as vile or demeaning in their comments and feedback.
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“We’ve gone the route of building a people-first or social-first approach to investing so that instead of just being a tool and utility to execute trades, we’ve become a more holistic, intertwined platform,” said Leif Abraham, who is Public’s co-CEO along with Mallick.
For now, Public is now only open to U.S. residents. But Abraham and Mallick, who grew up in Germany and Denmark, respectively, are working on getting the necessary regulatory approvals to allow people from outside the U.S. to invest through the app.
Public plans on using proceeds from the latest funding round to at least double the size of its staff of 50 people within the next year. It also is going to upgrade the app and seek more users who can provide a broader, cross-section of the population and investing community.
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“The app gets better the more people are on it,” Malling said. “The more diverse voices you have in the community, the more people can curate their experience. The more different angles and views on the stock market, the better for people.”
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
TORONTO — Canada’s investment product regulator says it imposed more than $14 million in fines and other financial enforcements in its last fiscal year.
The Canadian Investment Regulatory Organization (CIRO) says the total also includes imposed costs and the forced return of ill-gotten profits.
The regulator says it also ordered suspensions and permanent prohibitions in a significant proportion of proceedings against individuals.
Enforcement efforts included a $2 million fine against Fortrade Canada for recommending a high-risk product to unsophisticated retail clients, and a $1.7 million fine and permanent ban on securities-related business against Paul Walker for a range of misconduct including soliciting more than $1.5 million in investments for an outside business activity.
CIRO was created at the start of 2023 through a combination of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada.
The new self-regulatory organization says it is focused on harmonizing its regulatory approach to create more consistency and timeliness with enforcement action.
This report by The Canadian Press was first published July 16, 2024.
