Updates from the Evarvest Team

If you’re interested in the latest updates on Evarvest > Here are 3 letters written by @StephBrennan (CEO), @Igor (CTO) and myself :muscle: (COO) about what we achieved in 2019 and where we’re heading in 2020. :blush:

If you have any questions, shout out to all three of us right here :mega:

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The biggest challenges for you, as I see:

  1. Launch product ASAP. The likes of Revolut are coming, and they have already existing user base. Not to mention Trading212, which is already there and offers everything for free.
  2. Have ability to transfer positions out/in. Major drawback for fintech brokers is that you cannot transfer out your positions, in case they change their pricing later, like Trading212 might do, so you are reluctant to actually begin putting serious money with them. Having option to transfer out gets you better night sleep.
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Hi @SilvereX, thanks for sharing!

While Revolut is a great business, I see their trading app as less of a competitor to us. Unless they heavily invest in building this out, it’s an auxiliary product and not a core function. Auxiliary products are usually not enough not move customers from other platforms, rather they’re a retention strategy for their existing customers. With ~6mil customers out of a ~7bil population, there’s plenty of room for more players in the markets Revolut operates / is expanding into.

It’s definitely our priority to launch ASAP, and increased competition in the UK is the challenge I see. UX/ UI, our core offerings / features, combined with development speed and customer feedback will be a strength for us.

Feedback like the feature you’ve shared, to have the ability to transfer out/in, would be a great differentiator! The immediate hurdle is the cost to us to do this. Some brokers charge up to EUR75 per share to transfer out - a cost we can’t afford to cover for our customers. It’s also not a cost we would expect our customers to cover either - our aim is to help support new investors to grow their wealth, not deplete it with fees that prevent you from leaving.

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Hi Steph. I’m a long term investor, and may hold tens of thousands or hundreds of thousands of euros with Evarvest. That means a lot of capital gains taxes accrued over a long term. Even a portfolio of, say, €20,000 invested over 3 year period might have thousands of euros of potential gains, and hundreds of euros of capital gains taxes. Considering this, €75 per position is a negligible amount of money, compared to having to sell and owing these taxes, or staying and becoming hostage to changed platform pricing, and any further potential platform pricing changes in the future.

There is actually a lot of that happening in US robo advisor market - new fees, higher fees, new opt-out-only investments which incur capital gains taxes silently, aff of which has left a sour taste in investors mouths and made the new fintech platforms seem a bit dangerous - and having an option to pay only €75 for this peace of mind would be game-changing. I’d happily pay €75. Maybe such seemingly high fee would prevent any people to abuse your platform (by buying everything for free and then transferring out often). Of course, if you don’t want to put €75 on your price list, there are other options for you, maybe covering this fee only once ever, or waiving this fee for large enough positions, or whatever.

Disclaimer: I have invested in Evarvest, so I’m really interested to see you succeed!

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Hi @SilvereX, sorry for the late reply.

Completely agree with your concerns re becoming hostage to changes in platform pricing. It’s one thing I personally dislike when using Fintech products - they start out with competitive pricing and slowly increase as they gain traction. Aside from disliking the user experience of companies that do this, I also disagree with it from a business perspective.

Particularly in our space, there is increased competition in the market and the first differentiator between new and existing companies is usually price. If we’re slowing increasing our fees, it puts us at risk of losing the very clients that supported us to grow in the early stage, to our competitors that undercut us on price. To me, user retention is equally important as growth, and equally important to our long term success as a company.

My objective is to keep our fees low, and reduce our costs with our partners when we have scale with the aim to increase our margins this way. Of course, this is subject to the fees of our partners and the increasing costs they may have, but where possible, we will also make sure our revenue streams are cost effective for our users. And when adding new revenue streams for new features, our objective is to make sure they’re providing more value than cost to our users. It’s also important to me that we continue to align our product and pricing with our mission, to remove barriers to entry, not increase them.

Coming back to the EUR 75 fee to transfer out, agreed, if your portfolio is larger the EUR 75 would be nominal. That’s a good point re a once off charge to avoid people abusing the platform. We still need to work through the manual paperwork side of the transfer to make it more seamless - definitely something for us to explore further. It’s on our future features list for further assessment :slight_smile:

Thanks again for backing our round, and please keep your feedback coming! It’s really helpful to us to hear your ideas / thoughts and to challenge these new ideas together :wink:

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Hi Steph about the prising I agree with you just Seedrs introduced new transaction fee for using its secondary market like 1.5% for buyer and 1.5% for seller .it was free for 2.5 year so meny unhappy investors right now.

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