Capital Managed Investments Fintech unit invests in innovation

Change is the constant in the capital markets, and in recent years the rate of change seems to be growing exponentially. The role of financial technology (fintech) companies in this rapid development is significant, with innovative products and solutions changing the way business is conducted across the planet.

Capital Managed Investments’ fintech unit was set up to take advantage of the exciting opportunities offered by advanced technologies such as artificial intelligence and machine learning.

“We had a simple choice, be front-row spectators to some of the most exciting technological developments in decades, or play a role in the technology revolution through the allocation of capital,” explains Eric Axel, Chief Technical Analyst at CMI.

“The companies we invest in open up further opportunities, by growing new product lines and opening new market segments.”

CMI’s fintech unit was established in 2017 as a means of formalizing the periodic fintech investments the company had made. Axel says investments range from $1 million to $10 million, from Seed to Series C.

The biggest challenge for the device is volume. “We are currently tracking more than 2,000 companies to assess their suitability for investment and the proposals continue to pour in,” said Declan Pearce, who works with Axel and colleague Jason Sharpe to make up CMI’s fintech unit. “Keeping up with such volume can be challenging, but it also allows us to be extremely selective about which companies we invest in and maximize opportunities for returns.”

Once identified, companies are put through a rigorous screening process and those deemed suitable for investment are submitted for approval by CMI’s Investment Committee, which consists of the company’s senior management. As the due diligence has been done thoroughly, this is more of a formality than anything else.

“In six years, we have only seen one proposal rejected,” says Axel. “And this was due to factors beyond the control of either ourselves or the company identified.”

Currently, CMI invests mostly in series A, but taking a company to the stock exchange is the main goal. And that is a goal Axel is sure to achieve:

“This year is probably too early in the timeline, but next year and beyond we can expect to see a number of the companies we have invested in become household names.”

Media contact
Company name: Capital-managed investments
Contact person: Erik Axel
Email: Send email
City: Perth
Country: Australia
Website: www.cmi-au.com