GZV #33: All about Gen Z and Fintech
Startups. Trends. Markets. All from a Gen Z view.
Welcome to all of our new subscribers! If you ever want my opinion or thoughts on something associated with Gen Z, just shoot me an email.
🤓 Quick note: Currently looking for internship positions for the Summer of 2021. Reach out if you know of anything currently open! Much Appreciated.
Now, Let’s look at Composer…
Website:
https://www.investcomposer.com/
Problem:
Everyday retail investors aren’t able to easily create sophisticated automated investing strategies. Just another advantage that the suits on Wall Street have over the average investor.
Solution:
“Investing, made creative. Composer allows you to create custom automated investing strategies.”
Gen Z View:
I’ll acknowledge that most of my peers aren’t ready for a platform like this, they are mostly trading on Robinhood and still in the learning process.
This doesn’t mean that they can’t be customers. As they learn and grow they will find their strategy and will be able to use composer to automate it.
I have been writing about the democratization in the finance industry for a while now with companies like Titan and CommonStock. Composer is just another company giving everyday people the resources that the top dogs have had for years. No question, this sector is exploding.
I would estimate that the key customer acquisition age here is 20-25. These are the people who are into investing and an automated strategy would help. One barrier here is going to be making sure the product is usable for all types of investors, not just the advanced ones.
Other features:
Backtesting feature where you can test how your strategy would have done in previous years.
Test your strategy with Composer’s paper trading feature.
Start with simple automations and advance all the way to conditional (if, else) statements
Fundraising?
Do not believe so, but if you have questions, email support@investcomposer.com
Extra:
Check out The Composer Manifesto as written by the CEO.
Gen Z’s interaction within the Democratization of Finance
I know you’re probably sick of hearing the term “democratization of finance”, trust me I am too. The movement though is very important and Gen Z has been at the forefront.
With apps like Robinhood and public on the scene, investing has never been easier. Flash back 10 years ago and trading stocks required submitting a long broker application and $5 commission. The game was reserved for those at the top. Now, startups are creating tools that allow regular investors to have the same power that hedge funds and the top 1% have.
Titan allows for anyone to have access to a hedge fund. With as little as $10, you can join Titan and have your money treated like first class capital.
With CommonStock, you can get verified helpful investment advice, not just the noise from places like Twitter.
On Public, you can invest in stocks along side your friends and see why people made the investment decisions they did.
And on Composer, you can set up automated strategies like many of the top hedge funds do.
With these tools and more, average investors are more powerful than ever before. Right now, a majority of Gen Z is starting to explore the stock market. It is currently very gamified, most kids just want to make as much money as quick as possible. They will soon realize this is not how you win the game. You win by investing in great companies and strategies over the long term.
Here is my prediction for current Gen Z investors:
Over the next 1-3 years, these new investors will learn how to properly invest and start using the tools above to their advantage. They will become more sophisticated and learn what strategies and tools work best for them.
Above, I’ve listed around 4 companies that have found their own little niche and I believe will benefit greatly from this movement. This isn’t to say there aren’t other companies that are going to do well, there is, I have just yet to identify them or they haven’t been created yet. This is definitely an area to watch for emerging companies, and as always feel free to reach out if you’d like my thoughts on a certain company.
Cheers,
- Tom