Fintech startup Income&, an online investment platform, announced it had collected $2.9 million in seed funding and committed capital.
Among the participants in the funding round of the San Francisco-based firm were iSeed Ventures as well as a number of high-profile individuals from the financial industry.
On its platform, Income& will market its investment product PRIMO, a low-risk, high-yield instrument backed by prime mortgages, the company said, that clients could customize according to individual preferences. The yield level it will be targeting is up to 7.5 per cent.
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Prime mortgages only
Commenting on the news, Chief Executive Officer Brad Walker said: “We founded Income& to solve two problems: the lack of investments for baby boomers to support a comfortable retirement, and the absence of transparency in the mortgage market which in part led to the ‘Great Recession’. Income& works with established, name-brand mortgage lenders to onboard high-yield, safe, prime-rated loans to the PRIMO marketplace, which are further reviewed and rated for an added measure of clarity. The technology Income& has developed gives investors unprecedented transparency, control and access to their customized portfolio of PRIMOs.”
Income& seems set on filling a gap that exists in the fixed-income investment segment at the moment, with either yields of products too low or risks unacceptably high. The firm has focused on finding the middle ground, with a more acceptable level of risk and attractive yields.
Initially, the PRIMOs will only be available for accredited investors or their Registered Investment Advisors.