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§ Private Profile · Boston, MA, USA
Online investment platform matching individual investors with professional money managers for equities, ETFs, and diversified portfolios.
Covestor is a London and Boston-based online investment platform that matches individual retail investors with the portfolios of professional money managers. As a registered investment advisor, the company provides a marketplace of active and passive equity and ETF strategies. The firm operates with an estimated 20 to 49 employees, generates between $5 million and $10 million in annual revenue, and recently reported a specific portfolio value of $190,953 across 2,209 holdings. Following its acquisition in 2015, the platform became a subsidiary of Interactive Brokers Group, a major brokerage firm founded by Thomas Peterffy, and subsequently rebranded to Interactive Brokers Asset Management. Prior to this integration, the service garnered significant media coverage from financial outlets including Forbes, Barron's, and The Wall Street Journal. Covestor was originally founded in 2007 by Imran Gulamhuseinwala and Rikki Tahta.
Covestor has raised $20.0M across 2 funding rounds.
Covestor has raised $20.0M in total across 2 funding rounds.
Covestor is a financial technology company specializing in online investment management, offering a marketplace for individual investors to select and replicate portfolios from professional money managers. It pioneered digital asset management by providing both active and passive investment options through portfolio synchronization technology, enabling transparent, low-cost access to diverse strategies.[1][3][5] Founded in 2007 and acquired by Interactive Brokers in April 2015, Covestor now operates as Interactive Advisors, serving retail investors with tools for trading, portfolio management, and automated strategies focused on high returns, dividends, ESG themes, and social justice goals.[1][3][7]
The platform addresses the problem of high fees and limited access in traditional asset management by allowing users to compare managers, sync portfolios automatically, and pay lower fees (0.10% to 0.75% annually, no trading commissions).[3][7] It primarily serves individual investors seeking convenience and performance without direct trading expertise, with growth evidenced by $24.85M in funding before acquisition and integration into Interactive Brokers' global platform.[1]
Covestor was founded in 2007, with early operations noted in London and a U.S. presence in Boston, Massachusetts, later expanding to New York.[1][2][4] Key figures include CEO Asheesh Advani and Chief Marketing Officer Steven Holstein, who highlighted the company's role in bringing online marketplace dynamics—search, comparison, and selection—to investment management.[3] The idea emerged during the rise of digital financial services, positioning Covestor as a pioneer in "copy trading" or portfolio syncing, where investors could mirror top performers transparently.[3][5]
Early traction came from its innovative model, attracting media coverage in Forbes, Barron's, The Wall Street Journal, CNBC, and Bloomberg, which validated its appeal as a lower-cost alternative to registered investment advisors.[4] A pivotal moment was its April 2015 acquisition by Interactive Brokers, a global electronic broker, which expanded its reach, added portfolio managers, and integrated it into a broader trading ecosystem.[1][3]
Covestor rode the early 2010s fintech wave of democratizing investing through online marketplaces, coinciding with robo-advisors and copy-trading platforms like eToro or SigFig.[1][3] Its timing capitalized on post-financial crisis demand for transparent, low-fee alternatives to opaque hedge funds, influencing the shift toward automated wealth management for retail investors.[3][4] Market forces like regulatory easing for RIAs, mobile trading adoption, and AI-driven personalization favored its model, positioning it as a bridge between individual investors and pro strategies.[1][7]
By pioneering portfolio marketplaces, Covestor helped shape the ecosystem, inspiring competitors (e.g., Folio, BCP Global) and integrating into larger brokers like Interactive Brokers, which amplified global liquidity and tech-driven execution across 100+ exchanges.[1][3] This evolution underscores fintech's role in reducing barriers, with Covestor's acquisition exemplifying consolidation trends.
Post-acquisition, Covestor (as Interactive Advisors) is poised to expand thematic portfolios amid rising demand for ESG, AI-optimized allocations, and personalized investing. Trends like sustainable finance, retail trader surges via apps, and global market volatility will drive growth, leveraging Interactive Brokers' infrastructure for new asset classes and regions.[3][7] Its influence may evolve toward hybrid human-AI management, potentially powering more "zero-commission" ecosystems.
Tying back to its pioneer status, Covestor's legacy endures in making pro-level investing accessible, with momentum suggesting sustained relevance in a maturing digital wealth landscape.[1][3]
Covestor has raised $20.0M in total across 2 funding rounds.
Covestor's investors include Amadeus Capital Partners, Andreessen Horowitz, Comcast Ventures, Matrix, Rivet Ventures, Spark Capital, The Hit Forge, Union Square Ventures, Joshua Schachter, Bay Partners, Betaworks Ventures.
Covestor has raised $20.0M across 2 funding rounds. Most recently, it raised $13.0M Series B in June 2013.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Jun 1, 2013 | $13M Series B | — | Amadeus Capital Partners, Andreessen Horowitz, Comcast Ventures, Matrix, Rivet Ventures, Spark Capital, The HIT Forge, Union Square Ventures, Joshua Schachter, Amadeus APEX Technology Fund, BAY Partners | Announced |
| Apr 1, 2008 | $7M Series A | Spark Capital, Union Square Ventures | Amadeus Capital Partners, Andreessen Horowitz, Betaworks Ventures, Comcast Ventures, Matrix, Rivet Ventures, The HIT Forge, Joshua Schachter, Amadeus APEX Technology Fund | Announced |