In a recent video that AutoWealth did as a pre-cursor to the 2nd edition of Seedly Robo Wars, there were quite a bit of information that might be interesting to current and would-be investors of the platform.
Apparently, they already have this product called Flexi-Cash (2019) for cash management needs where the underlying investment in short-term treasury bills guaranteed by the issuing governments. I was neither aware of it, nor did I need it. Pretty much been automating my investments.
In the pipeline (2020) is AutoWealth Plus for more “advanced” investors who want to take on higher risk and aim to achieve better returns. Tai Zhi did not elaborate on what it was and I’m not even sure if I need it.
The intended launch for SRS and CPF offerings at the end of April is postponed (possibly due to the current situation?) and maybe we’d get in it 2020 too.
How is AutoWealth doing financially
There was quite a bit of hoo-ha when Smartly closed down. I believe that was why AutoWealth chose to touch on their financials.
Way back in 2015, AutoWealth became a portfolio company of NUS Enterprise. A portfolio company is a company or entity in which a venture capital firm, a buyout firm, or a holding company invests. What this also means is that there is access to affordable/vast resources and low overheads. Start-up don’t want to be burning cash, right?
AutoWealth completed pre-series A funding round by a public-listed company in 2018. I think I know why they did not want to use the company name in the slide (haha) but I have a good idea who it was. I like to keep a lookout for the robo-advisor that I’m investing with 🙂
The super good news is that AutoWealth is expected to be profitable and sustainable this year! Especially when their newer offerings above (SRS, CPF, AutoWealth Plus) haven’t even been launched yet, and whatever they’re not releasing as public information. That pretty much put my worries to rest in what I’ve talked about in here.
In comparison to the shock-and-awe slides of their competitors (yeah I actually watched all five and they all looked pretty strong), it wouldn’t be too difficult (partly hilarious too) to notice the whole David vs Goliath situation out there. AutoWealth management team slide has a total of 4 persons.
While the rest of them were busy hawking their dozens of team members from the big names companies and millions of dollars raised in funding, the correlation is there. The huge team of highly competent talent are going to burn through a lot cash just via their salary, not to mention other expenses like office rental etc.
Is the Singapore consumer market big enough? Probably not. They are going to need to go regional or go after the deep pockets. From the presentation, Endowus has their unique strategy of emphasis on CPF money and going after this pot of gold.
The rest of the slides
Nothing special in the rest of the slides. Pretty much what everyone already knew, but if you’re new to AutoWealth – check it out. More of my AutoWealth posts can be found here. Just like the fans of a soccer team are often termed the 12th man, I’m the 12th man for AutoWealth.