Aries

Aries

Early Stage

Master the Markets

Master the Markets

Overview

Raised to Date: Raised: $1,091,196

Total Commitments ($USD)

Platform

StartEngine

Start Date

07/17/2023

Close Date

12/20/2023

Min. Goal
$14,998
Max. Goal
$1,234,999
Min. Investment

$496

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$3.12

Pre-Money Valuation

$24,960,000

Rolling Commitments ($USD)

Status
Funded
Reporting Date

12/30/2023

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$7,040

# of Investors

628

Momentum
Funded
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Year Founded

2021

Industry

Financial & Insurance Products & Services

Tech Sector

Fintech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

Low

Location

DETROIT, Michigan

Business Type

High Growth

Aries, with a valuation of $24.96 million, is raising funds on StartEngine. It is a trading and investment platform that brings the tools used by professional investors to ordinary retail investors. Aries is available in 130 countries and offers commission-free trades and access to various types of investments and asset classes. The platform is 75% less expensive and has grown its client base by 600% in 2022. Reda Falih and Pash O’Connor founded Aries in September 2021. The current crowdfunding campaign has a minimum target of $14,997.84 and a maximum target of $1.23 million. The campaign proceeds will be used for clearing house deposit, research and development, marketing, design, company employment, exchange data, and regulatory licensing.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$60,000

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-97,683

$-32

Summary Balance Sheet

FY 2022 FY 2021

Cash

$223,216

$49

Accounts Receivable

$0

$0

Total Assets

$352,974

$49

Short-Term Debt

$0

$0

Long-Term Debt

$369,730

$0

Total Liabilities

$369,730

$0

Financials as of: 07/17/2023
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Ratings KingsCrowd Startup Rating Methodology Article

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Analyst Report

Synopsis

The world of investing and trading has traditionally been dominated by professional investors and institutions with access to sophisticated tools and resources. Aries aims to level the playing field by bringing these tools and capabilities to ordinary retail investors. Aries is a trading and investment platform that offers commission-free trades and access to various types of investments and asset classes.

Aries has experienced significant growth, expanding its client base by 600% in 2022. The platform is available in 130 countries, providing global reach and accessibility to investors around the world. By offering commission-free trades, Aries aims to reduce barriers to entry and make investing more affordable for retail investors.

Aries received preseed funding from Invest Detroit Ventures. With a valuation of $24.96 million, Aries is seeking to raise funds on StartEngine to fuel its growth.

Next Section: Price

Price

Aries is offering equity at a $24.96 million valuation. While Aries has a global presence, available in 130 countries, and offers commission-free trades and access to various types of investments and asset classes, the valuation seems significantly inflated. The revenue multiple of 416x is extremely high, especially considering the company's annual revenue of only $60,000. This valuation suggests that investors are paying a premium for the potential growth and scalability of Aries' platform.

Investors should carefully consider the potential risks and returns associated with investing in Aries at this price point.

Next Section: Market

Market

The global online trading platforms market is a highly competitive and regulated industry. It is driven by several market trends, including increased retail participation in trading. The rise of online trading platforms and the ease of access to these platforms have attracted a larger number of retail investors to the market.

The addressable market for Aries is the global online trading platforms market, which is estimated to be valued at $9.32 billion. The market is expected to grow at a moderate rate of 6.4%. Though the market is large and growing, it is extremely competitive, with established competitors such as Webull, eToro, Vanguard, Robinhood, and eTrade. These competitors have already established their presence in the market and have a significant market share.

Market regulation is high in the online trading platforms industry, which adds an additional layer of complexity for companies like Aries. Compliance with market regulations and obtaining necessary approvals and licenses is crucial for operating in this industry. At this time, Aries is not a registered broker-dealer.

Overall, Aries operates in a highly competitive and regulated market, but its focus on bringing professional tools to retail investors and its global presence position it well for growth and success.

Next Section: Team

Team

Aries was founded by CEO Reda Falih and COO Pash O'Connor. Falih has a strong background in the financial industry, with over 7 years of relevant industry experience. Prior to founding Aries, he worked as an Investment Specialist at Aided Trade. O'Connor also brings valuable experience to the team, with a background in web development for financial services. The two founders have very complementary skillsets, with O'Connor bringing technical expertise, and both founders having industry exposure. The greater team consists of just four members, a small but appropriate size for a startup at this stage that is trying to stay lean.

Next Section: Differentiation

Differentiation

Aries operates in the highly competitive market of online trading platforms, with established competitors such as Vanguard, Robinhood, and eTrade. The company's top direct competitors include Webull and eToro. While Aries differentiates itself by offering commission-free trades and access to various types of investments and asset classes, this is not a unique selling point in the industry. Many other platforms also provide commission-free trading and a wide range of investment options.

However, Aries has gained traction by being available in 130 countries, which is a significant advantage over some of its competitors that may have limited geographic reach. This global presence allows Aries to tap into a larger addressable market and potentially attract a diverse customer base.

Despite the competitive landscape, Aries has managed to grow its client base by 600% in 2022, indicating that it has been able to establish early interest. That said, this growth is likely not sustainable and is probably reflective of a small number of early adopters. Aries also has several partnerships with established players. Though in the early stages of development, these partnerships could potentially provide additional value to customers and differentiate Aries from its competitors.

Overall, Aries operates in an extremely competitive market with established players. It offers a global reach, commission-free trades, and access to professional-grade tools for retail investors. However, several other platforms offer similar features. Aries will need to continue to innovate and differentiate itself to stay competitive in the market.

Next Section: Performance

Performance

Aries has made significant progress in its development and growth. The platform is available in 130 countries, providing access to a global market of online trading platforms. Aries has formed major partnerships with reputable companies such as Apex Fintech Solutions, TradeStation, TradingView, BENZINGA, TrendSpider, Sterling Trading Tech, Sofi, and WeBull. These partnerships enhance Aries' credibility and expand its reach to potential customers.

Aries has also gained traction with major customers, including ClickIPO. This demonstrates the platform's ability to attract and serve notable clients in the financial industry. Additionally, Aries has experienced a remarkable 600% growth in its client base in 2022, indicating strong demand and customer satisfaction. That said, this percentage may be based on a small number of early users, and is likely not sustainable. The company reported annual revenue of $60,000 for 2022, the first year with revenue on the books. Though the company has very little revenue, the partnerships highlight opportunities for future growth.

Financially, Aries has managed its expenses well, with a monthly burn rate of $8,140.25. The company's cash and cash equivalents stood at $223,216 at the end of the most recent fiscal year, providing a solid financial foundation for future growth.

Overall, Aries has demonstrated strong traction, significant partnerships, and a growing client base. While the company is still in the early stages and has just begun to bring in revenue, its position in the highly competitive online trading platform industry and its commitment to providing professional tools to retail investors make it an intriguing prospect for investors.

Next Section: Risk

Risk

Aries operates in an extremely competitive market, with both indirect and direct competitors. For example, Vanguard, Robinhood, and eTrade have established themselves as major players in the online trading platform industry. Aries also faces direct competition from platforms like Webull and eToro. This high level of competition poses a risk to Aries' ability to attract and retain customers, as well as to differentiate itself in the market.

Additionally, Aries is currently in the early stages of development and has not yet achieved profitability. This presents a risk as the company may face challenges in generating sufficient revenue to cover its expenses and achieve profitability in the future.

Lastly, Aries' valuation appears to be relatively high compared to its current financial performance. This raises concerns about whether the company is overvalued, which could impact the potential return on investment for investors.

Overall, while Aries has a compelling product offering and operates in a high-demand industry, there are several risks that investors should consider, including intense competition, early-stage development, financial challenges, and valuation concerns.

Next Section: Bullish Outlook

Bullish Outlook

Aries has positioned itself as a disruptive force in the online trading and investment platform industry. By offering commission-free trades and access to various types of investments and asset classes, Aries has successfully attracted a growing client base, expanding it by an impressive 600% in 2022. This rapid growth demonstrates the strong demand for the tools and services that Aries provides to ordinary retail investors.

With its global reach, Aries has tapped into a vast addressable market of online trading platforms, spanning 130 countries. This provides the company with significant growth opportunities as it continues to expand its user base and establish partnerships in key markets. As Aries continues to scale its operations and attract more users, there is significant potential for substantial revenue growth.

The company's high margin level and low capital intensity further contribute to its bullish outlook. Aries has managed to achieve high margins, indicating efficient cost management and the potential for strong profitability as it continues to grow. Additionally, the low capital intensity suggests that Aries can achieve its growth objectives without requiring significant additional capital investment.

Aries has already secured venture capital backing from Invest Detroit Ventures, further validating its potential and attracting investor interest. This support from a reputable VC investor adds credibility to the company's growth prospects and enhances its ability to raise additional funds to fuel its expansion.

Overall, Aries has demonstrated strong growth potential and a solid foundation for future success. With its expanding client base and global reach Aries is well-positioned to capture a significant share of the online trading platform market and deliver value to its investors.

Next Section: Bearish Outlook

Bearish Outlook

Aries operates in an extremely competitive market, with well-established and popular platforms such as Vanguard, Robinhood, and eTrade. In addition, Aries faces direct competition from platforms like Webull and eToro. These competitors have already captured significant market share and have established brand recognition. Aries will need to differentiate itself significantly to attract users away from these established players.

Furthermore, Aries is currently overvalued with a valuation of $24.96 million. This valuation seems high considering the company's limited revenue of $60,000 and a negative net income of -$97,683. The revenue multiple of 416x is exceptionally high and suggests that the company's valuation is not supported by its current financial performance. Investors should carefully consider whether the potential growth of Aries justifies its current valuation.

Considering the intense competition and high valuation investors should approach Aries with caution and carefully evaluate the company's ability to succeed in the highly competitive online trading platform market.

Next Section: Executive Summary

Executive Summary

Aries is a trading and investment platform that aims to bring professional-level tools and resources to retail investors. With a presence in 130 countries, Aries offers commission-free trades and access to a wide range of investment options and asset classes. The platform has experienced significant growth, expanding its client base by 600% in 2022. Aries has established partnerships with companies such as Apex Fintech Solutions, TradeStation, and TradingView, among others.

While Aries has shown promise in terms of user adoption and strategic partnerships, it faces intense competition in the online trading platform space. Competitors include Webull, eToro, Vanguard, Robinhood, and eTrade. Additionally, Aries is currently overvalued at $24.69 million with just $60,000 in revenue.

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Aries on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $24,960,000
Price per Share: $3.12

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