Dutch investment platform Bux, which has been in operation for about a year and claims more than 200,000 users (79% with little or no prior investment experience) mainly in The Netherlands and United Kingdom, wants to make it easy for inexperienced investors to get started in the process, while having a bit of fun along the way.
The idea behind Bux is that users should give the service a test run before they jump in and start investing real money. Upon signing up for the service, users are given 1,000 funBux (play money) to try and get the hang of things. Having tried it out, they are then allowed to transition to seriousBux (50 pounds, at a minimum, must be put into the user’s account) and begin to invest for real. Bux offers tools similar to other investment platforms, but one of the ways in which theirs stands out is the “game” feature, which allows users to complete against their friends or total strangers in order to test your abilities.
It is worth noting that Bux tries to prevent their users from going wild and pouring money into a particular stock by placing a 500-pound limit, with the idea of diversification. They also do not allow users to lose more money than they put in.
As with other investment services, Bux operates by taking a small cut (as little as 0.25 pounds) on each transaction.
Bux revealed today that they have pulled in $1.9 million from a group led by Initial Capital and including participation from Velocity Capital and 5Square. The startup states that this second financing round, which following prior investment from Orange Growth Capital and the company’s own founders, will be directed towards funding expansion to new markets in Europe.