Social-trading app starts third funding round
Written by Peter Walker
Pelican, the only mobile first, multi-broker network regulated by the Financial Conduct Authority (FCA), has announced its latest Seedrs funding round.
Founded by ex-City brothers Peter and Mike Read after seven years of building financial exchange platforms for companies such as Gain Capital and LCG, the platform is designed to allow retail traders and investors to chat, share and compare live trades in customised social groups.
It has been built to enable third-party brokers to plug into the Pelican social network and over 10,000 global markets, with plans underway to partner with City Index and IG Group before the end of 2018.
Mike Read said: “We believe our latest funding-round is especially timely given ESMA’s ruling that obligate brokers to publish their percentage of profitable clients: with an industry average of 82 per cent of CFD accounts operating at a loss, there clearly needs to be a new model to offer traders more enhanced profitability.”
He argued that the app offers a new way to solve the significant gap in trading profitability. “By integrating communication into a central network for traders, we can offer a platform where live data and ideas can be shared between market professionals and retail traders on a fully-regulated platform.”
Already backed by former senior IG executives Will Armitage and Andrew Mackay, Pelican also has the support of early stage technology investor Venrex.
This funding round follows two successful stages in 2016 and 2017, where £500,000 and £1 million were raised respectively.