Yep agree. I also think that their model may have been hit as a result of COVDID. Their marketing materials seem to very much target millenials as the ones ripe to invest in this.
I think that millenials are going to
Be hit hard by unemployment and large reduction in disposable income
Move to be cash conservers rather than medium term ,or long term investors and unlikely to be taken large credit as well as I think many will have been hit hard by the recent shock events if they don’t have a few months free cash in the bank
I think they will struggle due to above impact on their target AUM and also as you say many more options with people where it may just be a switching. I would expect expect the TER to be higher than a lot of funds and that can be significant for low AUM funds and its not just the management fee that needs to be compared as early stage funds unless TER is capped and the management company subsidises it then investor get stiffed. SUbsidising the TER also means of course the company raising crowd will be paying the subsidy
I always used to work on a fund below 100m AUM was not sustainable looking at compliance and other overheads which made the TER a barrier to investors. If they can get 100m through the door then they have done well.
I just don’t think economics work here