New York-based Left Lane Capital has led an investment round in Composer Technologies, the US focused automated investing platform.
The platform raised an additional $6m in funding, bringing its total raised to over $11m.
Other investors in the round included First Round Capital, AVG Basecamp, Draft Ventures and Not Boring Capital.
The funding is driven by several recent key growth indicators showcasing increased customer demand for Composer’s platform and a significant market fit, including over 400% of growth in trading volume and 600% growth in AUM just in the past few months despite the broader market downturn.
“The no-code interface on Composer opens up the world of algorithmic trading to retail traders—previously prohibited by coding ability and data costs. Retail traders can now easily design, back test, and auto-execute trade algorithms within the platform based on their own set of dynamic logic and triggers,” said Harley Miller, Founder and Managing Partner of Left Lane Capital.
“The product is highly robust, and has the opportunity to become a de-facto retail platform for active portfolio management and beyond, as self-directed investing continues to grow in demand and popularity.”
Composer offers users the ability to build, backtest, and invest in strategies, using a beautifully designed no-code editor.
An in-house investment team sources ideas from academic research and the work of well-known investment funds to provide templates that can be used off-the-shelf or modified with the click of a button.
Each strategy goes through a rigorous screening process.
Since launching in November 2021, the company has grown rapidly, even as day-trading apps have seen user growth stall.
This is due to the company’s focus on helping investors make smarter decisions instead of gamifying investing.
Rules-based investing has been shown to reduce emotional decision-making and better manage risk than other approaches.
Safely navigating investments under current market conditions requires hours of endless research and monitoring.
Composer was born out of a need to simplify this process. Its powerful platform allows investors to automatically invest in strategies that react to the market and capture the upside, while protecting their downside.
Previously, this style of systematic investing was off-limits to the majority of investors because of the time, data costs, and coding skills required.
“During the lengthy recent bull market, many individual investors entered the marketplace for the first time and saw quick success, unfortunately, and especially for newer investors, it was easy to confuse luck with skill,” said Benjamin Rollert, CEO of Composer.
“With inflation now at a 41-year high, the same investors then experienced one of the worst periods for stocks and bonds in history and illusions were shattered. Investors are taking a sober look at their strategies and are increasingly thinking about how they can invest more intelligently going forward, that is where Composer comes in.”
