Game-changing alternative asset investment marketplace closed its first equity funding round, enabling further product development and hiring plans ahead of its platform launch in Q1 2023.
Darksquare, an alternative investment platform for individuals, successfully closed its first funding round in order to build out the product, marketing, legal and compliance functions. The round comprised seventeen leading angel investors with longstanding tech and specialist investment backgrounds, which, alongside Seedrs, raised over £260k from a total of 208 investors.
The founders, Daniel Harman and Alex Whitney, have created a unique model that lowers the barriers to entry to understand and access alternative asset classes that are usually restricted to Ultra High Net Worth Individuals (UHNWI), hedge funds and other institutional investors. At present, equities, cryptocurrencies and ETFs are the assets the average investor focuses on, however 70% of investors are seeking alternatives. Staying within this limited group, they not only remain exposed to market volatility and aren’t able to truly protect their investment income or manage their risk, but also miss out on the potential larger returns in the alternative investments space.
Darksquare provides accessible research on these investments, bridging the knowledge gap and feeding the appetite for wider understanding and control of personal investments.The funds raised will enable the platform’s growth ahead of the platform’s beta launch in mid-Q1 this year. The beta rollout will feature 2-3 carefully selected investment products with target yields in the 12% plus per annum range. Asset classes will include distressed/special situations credit, forestry, renewable energy and/or real estate.
Removing the time-consuming research, minimum investment amounts and common difficulty to move away from equity products, Darksquare opens up an individual’s opportunity to generate potential returns.
The new online platform allows more people to diversify their portfolios with alternative assets, which have a potential worth of £1.3T and include investing in diverse assets such as,wind farms, distressed credit, forestry, carbon capture projects and real estate.
One angel investor commented: “The typical recommended allocation for alternatives is 15-25% and as more people want to move away from equities and cryptocurrencies, Darksquare is plugging a crucial gap and making this a possibility. I’m particularly excited to be a part of this democratisation and to support two exceptionally innovative founders who are driving the change for greater accessibility and wealth distribution.”
The global economy’s continued flux over the last few years has driven more interest from individuals to invest, shown by three-quarters of Gen-Z and Millennials who already have or would invest. Additionally, Darkequare’s research has shown that 89% of those aged 30 and under are planning to invest in more asset classes.
Daniel Harman, Founder said: “Being well diversified, especially in times of market volatility like we’ve had, is so important. Despite more people either already investing or looking to invest, the traditional range of available assets remains small unless you have in-depth knowledge or are ultra wealthy; Darksquare is changing this by democratising investment access. We are thrilled to already see so much confidence and belief in this new marketplace, and to have the backing of multiple leading angels with significant grounding in alternative assets.”
Darksquare’s model focuses on a seamless and unique user experience without traditional management fees and niche products. Instead it is driven by a 1% payment-in-kind model, tying its revenue to the product’s performance meaning only quality investments are listed.
Alex Whitney, Founder noted: “The biggest trend we’ve seen is that people want more control and transparency with their finances, and fintech’s rapid development has enabled this huge push for innovation to meet this need. Darksquare Capital speaks directly to this with easy-to-use and understand product options and our funding enables our commitment to delivering an exceptional and unique user experience as we develop further.”
Ahead of the official launch, investors can sign up to the waitlist at Darksquarecapital.com