A Sydney-based robo-advice platform has secured a “significant” investment from the publicly-listed Millinium Alternative Fund as it looks to capitalise on its market position and rapidly expand around Australia.

Ignition Wealth is a financial advice platform that uses an algorithm to design and implement a dynamically updated portfolio for its users, focusing on the 85% of the market that the company says is currently underserved.

While neither party are disclosing the amount of the investment, StartupSmart understands that it is over $1 million.

The latest investment follows a $1 million cash injection in the startup from prominent Rich Lister Barry Lambert, and brings the total funding for Ignition Wealth to well over $5 million.

Ignition Wealth CEO Mark Fordree says interest in the startup of late has been overwhelming.

“We’ve seen quite a lot of interest in what we’re doing at the moment from various groups,” Fordree tells StartupSmart.

“The Millinium opportunity had a lot of overlap between where we see the market opportunity, and we’re very happy to have them on board.

“We’re continuing to match our capital requirements with our growth opportunities as we scale up the business.”

Fordree says he has been able to actively select the investors that are best aligned with his company.

“We’re absolutely targeting investors who understand the value proposition of not just robo-advice but an individual’s digital footprint,” he says.

“It’s going to be a cornerstone of how 85% of the market is going to approach managing their financial affairs. It’s not just wealth, it’s the whole financial picture.”

Ignition Wealth has the potential to be a market leading in this rapidly growing space, Millinium Capital Managers managing director Tom Wallace says.

“The Millinium Alternative Fund’s key objective is to deliver extraordinary results to our investors,” Wallace says.

“Globally, digital financial advice services are demonstrating rapid growth. We believe that Ignition Wealth delivers the best in class offering for the Australian market and provides the best opportunity for growth.”

Ignition Wealth has a clear head start from its nearest rival, Fordree says.

“We’re right at the front of the market at the moment,” he says.

“That’s certainly the feedback we’re getting from the major players in town and that’s why they’re talking to us.”

He says that demonstrating that the startup is sustainable and having the figures to back this up was crucial in securing the series of investments.

“At the end of the day if you don’t have a robust balance sheet behind you the large players will find it difficult to engage with you,” Fordree says.

“They want to know if you’re going to be around in a few years and if you can’t demonstrate that then you won’t get a deal.

“You need to demonstrate you have all the pieces of the puzzle, not just one or two.”

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