Covestor, an online marketplace for investing that recently relocated to Boston, said that it has raised $12.75 million in a Series B financing round, bringing the total amount of funding it has raised to date to $28 million.
Investors in the Series B round included Union Square Ventures, Spark Capital, Amadeus Capital Partners, and Bay Partners.
Covestor said it will use the proceeds to accelerate its growth and continue its mission of providing investors with access to portfolio managers in an online marketplace. With more than 100 portfolios available on covestor.com, the company said it “provides exceptional levels of transparency and liquidity to investors who believe that actively managed portfolios can perform better than index averages.”
“Research has shown that smaller, more nimble managers can outperform large hedge funds,” Covestor chief investment officer Sanjoy Ghosh said in a statement. “This is why we are excited to help investors connect with portfolio managers we specifically select from thousands of people who propose to offer their products on Covestor’s marketplace.”
Ghosh recently joined the company. His resume includes stints at PanAgora Asset Management and Putnam Investments.
Other recent Boston-based hires include Rich Gockelman, Gary Gregorian, and Gina Lambiase.
In a statement, chief executive Asheesh Advani offered some details on Covestor’s philosopy.
“The industry appears to have abandoned active money management,” he said. “Covestor has not. We have observed how portfolio managers, emerging hedge fund managers, and investors have been able to outperform the market. Our marketplace connects investors who seek higher than market index returns with a curated set of managers who share that goal.”
Covestor relocated from New York City to Boston’s Financial District in November.Chris Reidy can be reached at firstname.lastname@example.org.