Investment Manager Social Network, Covestor Raises $6.5 Million

Posted Apr 7, 2008

“In our first nine months we have demonstrated that there are tens of thousands of self-directed investors out there who are as good, if not better than the pros,” stated Covestor CEO, Rikki Tahta.

Covestor is a social network with a niche that focuses on investment managers. The company announced today that they have raised $6.5 million in investment from Union Square Ventures, Spark Capital, and Amadeus Capital Partners. Todd Dagres of Spark Capital along with Alberg Wenger of Union Square Ventures will be joining the Covestor Board of Directors.

Covestor launched in Beta over this past summer and the social network allows members to share and track stock portfolios.  If a portfolio does well, the owner can charge other members to follow them.  Current members are sharing data across $100 million in securities.  The company will be using the funds to advance the technology behind the site.

Covestor also has a widget that compares real time trades against other indexes such as the S&P 500.  An example of the widget is available on the sidebar of Fred Wilson’s blog, A VC.

Information Source:
[1] CNET: Investor social network pulls in financing of its own by Stefanie Olsen