Spaceship has secured additional fundings from two of its major shareholders towards new offerings, including a new US investing service, and the expansion of its existing operations.
It brings total funding under facility to $13.5 million after Spaceship successfully raised $7.5 million mid-2022.
“As a company transforming the way young people think about and invest their money, we’re often at the forefront of industry change,” said chief executive, Andrew Moore.
“We’re always up for the opportunity and challenge that this brings, and we’re fortunate to have the confidence of our major shareholders, who share our vision.”
The shareholders are Horizons Ventures, the private investment arm of Hong-Kong business magnate Li Ka-shing, which has previously invested in firms like Spotify, Facebook, and Zoom; and one of Australia’s richest men, Mike Cannon-Brookes’ private Grok Ventures vehicle.
Spaceship’s total funds under management has more than tripled over the last three years to $1.3 billion while its superannuation offering, Spaceship Super, has grown from 5,500 customers to over 22,000.
Moore notes the firm has achieved “very strong growth” despite challenging market conditions.
“We see incredible opportunity for future growth, especially as Spaceship launches its new US investing service,” he said.
This US investing service will expand Spaceship’s investment capabilities to invest in US stocks and ETFs, the firm said.
Over the years, it has not been an easy regulatory ride for the firm and its management.
Last month, the corporate regulator issued interim stop orders on Spaceship Earth Portfolio, Spaceship Origin Portfolio and Spaceship Universe Portfolio (together, the Spaceship Voyager Funds) and Spaceship Super, all run by Spaceship Capital. This was due to deficiencies in their target market determinations (TMDs) under design and distribution obligations.
It was the first time that ASIC had made an interim stop order on a superannuation product.
The interim orders stopped Spaceship Capital, and superannuation trustee Diversa, from issuing interests in, giving a product disclosure statement (PDS) for, or providing financial product advice to retail clients recommending an investment in Spaceship Super and the funds.
Last year, Spaceship Capital director and chairman, Paul Ernest Dortkamp, was banned from performing functions as an officer and responsible manager of a financial services business for two years, which was later set aside by the Administrative Appeals Tribunal (AAT).
In 2018, two years after it was launched, Spaceship Financial Services and then-trustee Tidswell Financial Services were issued infringement notices for making false and misleading representations regarding Spaceship Fund.
ASIC alleged that Spaceship implied the fund “directly and actively selected companies in which it invested members’ funds” when it was actually held in eight index-tracking ETFs.
Later that year, they each paid $12,600 in penalties following the ASIC investigation that found the super promoter and trustee made false and misleading claims about their fundamental investment philosophy.
