#Japan #Tokyo #Velpha Inc. #AI Investment Agent #Stock Universe

Velpha Inc.'s Revolutionary Shift in Investment Technology

In a significant move for individual investors, Velpha Inc., based in Chuo-ku, Tokyo, has successfully secured approximately 60 million yen (around $60 million) in seed funding through a third-party allotment from Genesia Ventures. With this funding, the company aims to accelerate the creation of a new investment experience powered by AI and advanced information technologies.

Addressing Investment Barriers

Despite government initiatives, such as the expansion of NISA (Nippon Individual Savings Account) with account numbers projected to reach 26.96 million by June 2025, many investors continue to face challenges. A survey by Japan's Financial Services Agency revealed that nearly 38% of NISA accounts have never made a purchase, leading to what is referred to as a “utilization gap.” One contributing factor to this issue is the psychological barrier, with nearly 46% of individuals who have not purchased investment trusts citing a lack of investment knowledge as a primary reason.

This psychological hurdle may prevent new account holders from taking the crucial first step in investing, highlighting the increased need for solutions that eliminate knowledge gaps, fostering easier decision-making processes in investment.

The Continuous Flow of the Investment Process

Traditional financial services have often prioritized transaction ease, focusing on features like one-tap orders or purchasing stocks from just 100 yen. However, investing is more than just executing trades; it comprises a continuous cycle of processes: 1) stock selection, 2) trade execution, 3) market monitoring, and 4) rebalancing.

The burden of conducting research and continuously monitoring the ever-changing market landscape often remains a significant roadblock, confusing new investors even after they open their accounts.

Velpha: AI-Powered Investment Support

Velpha seeks to revolutionize individual investment management through its AI investment agent service. This web-based platform aims to support investors throughout the entire investment process by leveraging advanced AI technologies.

Key Features of Velpha:

1. Intuitive Stock Universe Exploration
- Aiding in identifying what to buy.
Velpha provides access to data from over 10,000 publicly listed companies in Japan and the U.S., visualizing performance metrics and multiple indicators such as ROE and PBR. This helps users intuitively grasp the market positioning of their holdings while discovering undervalued stocks based on profitability and price attractiveness.

2. Portfolio-Based Stock Recommendations
- Tailored stock selection considering portfolio balance.
Faced with confusion over how to optimize their portfolios, users receive analysis and suggestions for stocks that promise improved returns while minimizing risks.

3. Chat-Based Investment Assistant
- Lowering decision-making barriers.
Users can seamlessly explore stock options and analyze their portfolios via a chat interface, making real-time inquiries about investments. For example, if a user wants to add healthcare stocks, they can easily find compatible options through conversational exchanges, thus easing the burden of continuous decision-making.

Utilization of the Raised Funds and Future Outlook

The funds raised will enhance security measures necessary for linking to brokerage accounts and bolster the product infrastructure through data integration and additional feature development. This includes platform improvements aimed at automatically visualizing and analyzing user-held assets, allowing for highly personalized investment advice.

Additionally, Velpha plans to incorporate sentiment analysis into its “Stock Universe” feature, which currently visualizes essential financial data. Recognizing the influence of real-time social media information on investor sentiment and trading behaviors will be pivotal in enhancing the quality of investment decisions supported by AI agents.

To advance product development and user delivery, Velpha is intensifying recruitment efforts across engineering and back-office areas, aiming to gather a diverse team passionate about enhancing investment experiences.

Investor's Perspective on Velpha

“As an investment manager, I believe that historically, achieving ‘alpha’ has been reserved for institutional investors or highly skilled individuals. The time-consuming need for specialty knowledge to excel in collecting information, stock analysis, and portfolio management has changed,” commented Iku Yoshiku from Genesia Ventures. “With the rise of AI, significant changes are underway, and Velpha aims to tackle not only the decision-making barriers but also to create a world where every individual investor can carve their own path to ‘alpha.’”

By placing the value of accelerating individual investment in the hands of users, Velpha is poised to redefine personal investment experiences, making them not just manageable but engaging for investors of all skill levels.

For more information on Velpha, visit their website.