This is an idea I might actually start someday, but I haven’t yet, so I figured why not air it here to see what people think.
The fundamental assumption behind this idea is simple: "normal" (i.e. not rich) people have bad access to investment advice.
I would like to create a company that solves this problem.
There are three basic approaches I have considered:
1: Provide access to sophisticated asset managers in a way that allows “normal” people to benefit from the services wealthy people and institutions benefit from today. The simple description of this would be something like: hedge funds for the masses.
2: Provide automated investment advice to people through a website using sophisticated algorithms and other fancy stuff that gives people tailored advice in a way that scales. This one seems easier (less regulations perhaps) but also harder because investing is actually really hard and few people do it well – which is why option 1 (which is more human-centric) might beat this version.
3: Connect individuals around the world with the myriad of individual investment advisors that are out there through a P2P platform. Think of it like Ebay for financial advisors, or Experts Xxchange for financial advice. This one is hard because it is a two-sided platform and suffers from the “chicken-or-egg” issue, but it is maybe easiest because it is just solving a search problem, which the Internet is really good at doing.
There are a lot of details behind each of these ideas, but I figured I would at least float the gist here to see if anyone has any thoughts. Please let me know if you do.