Coatue, Ackman put money into trading-focused social community Commonstock

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Oct 5 (Reuters) – Commonstock, a social community platform for retail traders, stated on Tuesday it had raised $25 million in a funding spherical led by hedge fund Coatue and from others together with billionaire investor Bill Ackman and Hollywood energy dealer Ari Emanuel.

The firm, which lets customers on its platform copy every others’ trades and focus on and rank funding methods, didn’t disclose the valuation at which the funds had been raised.

Venture investor Michael Ovitz, Upside Ventures and others additionally participated within the funding spherical for the corporate, backed by billionaire hedge fund supervisor Dan Loeb.

The firm ‘s platform is focused at retail traders, who’ve precipitated wild value swings in shares of so-called “meme stocks” reminiscent of GameStop Corp (GME.N) and AMC Entertainment Holdings Inc (AMC.N) this 12 months by banding collectively on boards like Reddit’s WallStreetBets.

“The era of memestocks has only underscored the need to separate signal from noise when it comes to retail investing,” Commonstock founder and Chief Executive Officer David McDonough stated in a press release.

The San Francisco-based firm, based in 2017 and formally launched in August 2020, additionally guarantees extra transparency by requiring customers to hyperlink their brokerage accounts to the platform, to confirm the investments they publish about are actual.

Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli