Hedge

Over the next two decades, Millennials and “Gen-Zers” will inherit more than $68 trillion of wealth.

Many of these consumers are at the beginning of their investing journey. And just like with most aspects of their lives, it's likely that social experiences will be key.

Historically, investing in the stock market hasn’t been social. Companies like Fidelity or Charles Schwab don’t offer any type of group investing. Neither do platforms like Robinhood or Acorns.

But Hedge takes an approach to investing that's socially-focused and collaborative.

Created by a team with experience at Morgan Stanley, Robinhood, Google, Uber, and the Financial Industry Regulatory Authority, this financial technology company enables users to pool money and invest together — in essence, creating their own hedge fund.

With Hedge, users can invest in companies or causes they believe have potential. And at the same time, they can gain knowledge about investing in the stock market.

Hedge has raised $1.2 million from professional investors including Bain Capital Ventures, Starting Line VC, Firstminute Capital, and Creatorled Ventures. And it has key partnerships with financial services companies Plaid, Nasdaq, Litquidity, Alpaca, and DFP Partners.

Hedge has started onboarding users to its platform and is preparing for a full launch in Q3 2022.

As mentioned, the key to Hedge is group-focused investing. Its collaborative trading platform enables users to create their own funds and aim to make money together.

Here’s how group investing works:

First, users form a group and determine the voting rules.

Next, they pool their capital and propose trades/investments.

Finally, proposals are voted on and investment decisions are made as a group.

In addition to group funds, Hedge users can invest individually. They can also access social features like investor communities and interactive learning resources.

To generate revenue, Hedge will collect a fee for each order placed and earn interest on un-invested user capital. Additionally, it will charge $10 per month for a premium subscription. This will give users access to robo-advisory tools and faster customer support.

Team Background

Yash Khandelwal - Co-Founder & CFO

Prior to starting Hedge, Yash worked in investment banking, focusing on debt financing for multi-billion-dollar corporations.

He then pivoted to startups and joined an early-stage technology company, where he led its finance and business operations team.

He earned a Bachelor’s degree in Finance from the University of Southern California.

Kyle Al-Rawi - Co-Founder & CEO

In addition to his role with Hedge, Kyle is Founder of Launch House, a startup accelerator program. Previously, he co-founded Blend Technologies Corporation, a fintech startup focused on credit card payments.

He earned a Bachelor’s degree in Health and Human Sciences from the University of Southern California.

Co-Investors

Litquidity Capital

A financial media brand and investment firm run by a notable content creator.

Bain Capital Ventures

A VC fund whose portfolio includes DocuSign, SendGrid, and Rent the Runway.

CreatorLed Ventures

A VC firm investing in early-stage startups.

Firstminute Capital

A London-based VC fund investing in early-stage startups.