An U.S-based Jemstep (acquired by Invesco in 2016), an open investment platform provider and developer for financial advisors, registered investment advisors, independent broker-dealers, and insurers, was co-founded in early 2008 by Kevin Cimring, Matthew Rennie, and Michael Blumenthal.
Jemstep raised a $4,5 million angel round in January 2008.
As Michael Kitces points out, Jemstep started off “as a direct-to-consumer portfolio monitoring tool that would gather investment details through account aggregation, analyze the investor’s portfolio, and recommend changes they could implement themselves.” Jemstep’s initial offering consisted of online investment and portfolio management services with screeners, and Jemstep targeted its services free for DIY retail investors with a portfolio under $25 000 and for a monthly subscription fee for portfolios over the threshold.
In 2014, Jemstep pivoted from the D2C offering to B2B model with the unveiling of their brand new Jemstep Advisor Pro solution to help advisors with “the ability to prospect for and serve clients more efficiently, and to use cutting-edge digital technology to deliver their valued advice.” Ever since Jemstep changed its core business model, they have focused on “building functionality that enhances an advisor’s ability to convert prospects into clients.”
“[…] Jemstep is able to bring a new approach to advisors, digital format, but we really believe as an active house that we can actually provide better investment performance. So it’s not just ultimately a cost game. What is the client trying to achieve, and what gives the highest probability, the best diversification to do that? And something like a Jemstep gives us the opportunity to yes, introduce smart beta factor investing, but also active management.”