Investing in Trove
“Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pays it.” — Albert Einstein
The rich make money, save money and invest money in profitable markets and ventures. Then they let the interest compound.
Aside from real estate, the other great wealth generator of our time is the stock market. Most often, investing is cut off from the growing middle-class population and reserved for the wealthy.
The current process for trading stocks and government bonds in Nigeria is fundamentally broken. Other than hefty charges, the account opening processes mostly require several physical walk-ins and tons of unnecessary paperwork. The alternative; engage brokers who serve as middle-men and charge exorbitant fees.
These bottlenecks, coupled with the lack of access to more mature markets like the NYSE limit participation in financial markets.
One of the most common questions in investment groups from members is “How do I buy shares of Dropbox or Lyft or Facebook?”
Ventures Platform has always been a strong proponent of democratizing economic opportunities. Trove’s vision of a world of borderless investing is something that resonates with us and the existence of such a product would be really impactful.
That’s why we’re backing Trove. The founders; Tomi, Desayo, Austin, and Ope have built a micro-investing application that allows users to invest in financial securities in Nigeria (Government Bonds, Stocks) and also in international markets (US Exchange Traded Funds & Stocks of US companies) with the tap of a button.
We’re particularly excited to see how the continent’s middle class and millennials adopt this service. The success of services like PiggyVest (one of our portfolio companies), has demonstrated consumers’ interest in taking control of their savings. We are convinced Trove will usher in a new generation into investing.
The NYSE and NASDAQ have a market cap of $30.2T and $10.1T respectively. They are the most valuable markets and have consistently outperformed every other market. Unfortunately, they have been largely inaccessible to Nigerians and Africans in general… until now.
Trove gives Nigerians (and soon Africans) access to these markets. With Lyft, Pinterest, Zoom, Jumia and a host of other unicorns still going public this year, Nigerians can now seamlessly participate in the global economy and own a piece of some of these extremely valuable companies without having to be residents of the US or having a social security number.
The team is a mix of repeat founders and finance professionals, with experience working in companies in the financial sector such as Goldman Sachs and UBS Investment Bank. We had the pleasure of working with them during the 3-month ARM Lab Corporate Accelerator. We got to witness first hand, their passion, and commitment to democratizing access to quality investment opportunities.
I am happy to announce our investment in Trove, the product is NOW live here and users can start buying US-based securities upon completing KYC.
Welcome to the Ventures Platform Family.