Change is the one constant in capital markets, and in recent years the rate of change appears to be growing exponentially. The role of financial technology (fintech) companies in this rapid evolution is significant, with innovative products and solutions transforming the way business is conducted across the planet.

Capital Managed Investments’ fintech unit was setup to take advantage of the exciting opportunities presented by advanced technologies such as artificial intelligence and machine learning.

“We had a simple choice, be front-row spectators to some of the most exciting technological developments in decades, or play a role in the tech revolution through allocation of capital,” explains Eric Axel, chief technical analyst at CMI.

“The companies we’re investing in open up further opportunities, by growing new product lines and opening new market segments.”

CMI’s fintech unit was established in 2017 as a means of formalizing the periodic fintech investments the company had been making. Axel says investments range from $1 million to $10 million, from Seed through to Series C.

The biggest challenge for the unit is volume. “We are currently tracking more than 2,000 companies to assess their suitability for investment, and the proposals continue to come pouring in,” said Declan Pearce, who works with Axel and colleague Jason Sharpe to make up CMI’s fintech unit. “Keeping up with such volume can be challenging, but it also allows us to be extremely selective over which companies we invest in, maximising opportunities for returns.”

Once identified, companies are put through a rigourous screening process, and those deemed suitable for investment are submitted for approval by CMI’s investment committee, comprised of the company’s senior leadership. With due diligence having been carried out thoroughly though, this is more of a formality than anything.

“In six years we have only seen one proposal rejected,” says Axel. “And this was due factors outside of the control of either ourselves or the company identified.” 

For now CMI are investing mostly in Series A, but taking a company to IPO is the major goal. And it is a goal Axel is confident of achieving:

“This year is probably too early in the timeline, but next year and beyond we can expect to see a number of the companies we have invested in become household names.”

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Company Name: Capital Managed Investments
Contact Person: Eric Axel
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City: Perth
Country: Australia
Website: www.cmi-au.com