Meet Lightyear, a brand new London-based startup popping out of stealth in the present day. The corporate is constructing a inventory buying and selling app with a concentrate on creating a really commission-free app. Along with waving account charges and buying and selling charges, Lightyear doesn’t cost overseas change charges both — as much as a sure level.
The 2 founders met once they had been working at Clever — then often known as TransferWise. That’s why it is sensible that Lightyear needs to face out from the group with decrease overseas change charges.
Martin Sokk, co-founder and CEO of Lightyear, labored at Clever between 2012 and 2017. He has held varied roles, comparable to head of product, head of individuals and head of operations. Mihkel Aamer, Lightyear’s different co-founder and CTO, was an engineering lead at Clever between 2013 and 2019.
“Having spent my profession in monetary companies, I’ve seen the great, the unhealthy and the ugly. I imagine retail investing in Europe remains to be very a lot ‘the ugly’ — we’re speaking about sneaky charges, much less entry and sophisticated merchandise remaining as the established order,” Martin Sokk stated in an announcement. “We’re constructing one thing that can change that by opening up investing as much as everybody, whichever world market they need to spend money on and nonetheless a lot they need to make investments.”
As a consumer, you’ll be able to count on a cellular app that allows you to purchase and promote shares and ETFs. There will likely be 1,500 shares and ETFs from a number of markets at launch. Prospects received’t pay any account charges, buying and selling charges and overseas change charges. However there will likely be a restrict on overseas change charges. After £3,000 monthly, customers pays 0.35% in FX charges.
The app isn’t fairly prepared simply but as Lightyear is opening up a waitlist in the present day. The product ought to roll out sooner or later throughout the third quarter of this yr.
Picture Credit: Lightyear
Lightyear has raised a $1.5 million pre-seed funding spherical co-led by the brand new unnamed fund shaped by Clever co-founder Taavet Hinrikus and Teleport co-founder Sten Tamkivi Teleport. That is their first funding by means of this new enterprise. Skype co-founder Jaan Tallinn can be co-leading the discovered by means of Metaplanet. There are additionally a number of enterprise angels collaborating in in the present day’s funding spherical, together with Checkout.com CTO Ott Kaukver, former President of Robinhood UK Wander Rutgers, and Veriff founder Kaarel Kotkas.
It’s a pleasant listing of traders however the firm will face robust competitors from different startups — you’ll possible find yourself paying extra charges if you happen to use one in every of these rivals, however they’re already properly established. As an illustration, Berlin-based inventory buying and selling app Commerce Republic has not too long ago raised $900 million. Within the U.Okay., Freetrade has additionally managed to draw 600,000 customers.
And but, extra importantly, Lightyear additionally competes with legacy brokers. In contrast to within the U.S., the overwhelming majority of retail traders nonetheless depend on conventional banks and net platforms for inventory buying and selling. There will likely be room for multiple firm on this area. So let’s see how Lightyear executes within the coming months.
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