Loyal3 operates a platform that enables consumers to buy shares in well-known brands without paying transaction or management fees. The product surfaces brand logos (including the top 50 brands on Facebook) so users can invest with about three clicks and purchase as little as $10. Users can also schedule monthly automatic investments; the platform enforces a $10 minimum per investment and a $2,500 monthly maximum per stock. Loyal3 provides fee-free service by having participating brands pay the transaction fees as a form of marketing and customer affinity. The company blocks shorting and does not lend shares, positioning the product as a lower-cost way for companies to manage retail shareholders. From an operating/market perspective, Loyal3’s thesis is driven by low individual-investor participation (about 18% of U.S. people have made individual investments) and aims to democratize stock ownership.

Total raised

$18M

Funding rounds

1

Latest round

Series C

Latest activity

May 2013