Being a successful investor requires discipline. The threat of emotional decision-making interfering with trading decisions can be alleviated by implementing a rules-based trading approach. While long-used by high-frequency professional traders, this functionality hasn’t been readily available for retail investors. Pluto is an automated trading platform that brings this functionality to the masses. Without the need for developing algorithms and without coding knowledge, investors can build their own rules-based systems with a few clicks and drag-and-drop functionality. Currently, Pluto only offers paper trading to allow investors to see how their strategies would work in a simulated environment but the company has plans to integrate live trading into its platform. Investors have the option to build their self-directed trading models or buy/lease strategies from Pluto’s marketplace of vetted investment trading models. This marketplace platform is built on Web3, leveraging NFTs.
LA TechWatch caught up with Pluto Head of People Caroline Mendel to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We have raised a seed round of $4M from three funds including:
- At.inc/ $2M Lead investor Nadav Eylath
- Switch.vc $1M Paul Arnold
- Caffeinated Capital $500K Raymon Tonsing
Tell us about your product or service.
We are an automated trading platform that allows the everyday retail investor to utilize the powers of automation to execute their rules and ideas for trading. With Pluto, investors are able to design their strategies using code or our no-code blocks editor and run detailed backtests to see how their strategies would perform during different market periods. We currently have paper trading available on our platform and are working hard to implement live trading so investors can execute trades live with just the click of a button. For investors who want to take advantage of automation but don’t want to build strategies, they can utilize our marketplace where creators rent access to their strategies for others to use.
What inspired the start of Pluto?
Pluto began as a passion project of middle school best friends, Jacob and Dakota. Excited by the world of retail trading, Jacob and Dakota decided to program their own automated strategy. During this process, they realized how unnecessarily complicated the process was— from connecting multiple platforms to understanding complex code to purchasing expensive data, they realized why trading was difficult to break into. The two knew they could make the process easier and accessible to the masses, so they set out to create Pluto.
How is it different?
Pluto is an exceptional platform because we make automation easy, fun, and accessible. Competitors to Pluto are still targeting veteran retail traders, requiring in-depth coding knowledge as well as charging high fees for their tools. Additionally, these platforms partner with outside brokerages so traders have to create additional accounts to connect to the platforms. With Pluto, everything is easier. We are 100% free, with no tiered pricing or paid upgrades. We provide tools that allow anyone to build a strategy, no matter what people’s skill levels are. We are also working on integrating our own brokerage so people can live trade directly from our platform without the convoluted steps of attaching a separate brokerage account. Our marketplace protects creators’ intellectual property while benefiting from others renting their strategies.
What market you are targeting and how big is it?
We are currently targeting Gen-Z traders who make up a roughly estimated market of $8B. However, we see this product eventually being used by the masses.
What’s your business model?
Our business is structured around marketplace transaction fees in which we take a small portion of every transaction of our marketplace strategies.
What are your post-COVID office plans??
We are thrilled to have an in-person office in Playa Vista! After the loneliness of COVID stay-at-home procedures, we decided we wanted a friendly in-person company culture where we can see each other and collaborate together every day as well as offer remote positions for people who prefer remote work.
What was the funding process like?
The funding process was difficult at first. However, once we got going it became easier and easier. More people want to invest if others have invested. Once we had one investor, we were able to get other investors more easily.
What are the biggest challenges that you faced while raising capital?
We are unfortunately in a recession where VCs are unable to invest as freely as they had before. We are lucky to have a team and product that investors believe in and see as a company that will disrupt and change the fintech industry.
What factors about your business led your investors to write the check?
Our speed and execution is far beyond any of our competitors. Our founders have a clear vision and work consistently to make sure our product is up to our high standards.
What are the milestones you plan to achieve in the next six months?
In the next six months, we will implement crypto live trading on our platform.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Reflection is key. Take in every piece of advice people have given you and see if it fits into your business. Some advice is better than others but it is important to understand why you were given that piece of advice and how it will improve your business. It is important to constantly reflect on your business and make efforts to revise and improve upon it. Nothing is perfect, but improvements can always be made.
Where do you see the company going now over the near term?
At Pluto, we see ourselves as a generation-defining company. We know that we can change the way people interact with and handle their money, and we want to give every investor the autonomy to decide how their money is being used. In the near future, we are implementing crypto live trading and getting our brokerage license to allow for live trading on all US equities.
What is your favorite restaurant in LA?
Uovo— They have the best pasta and gluten-free options too!
