For Crypto Trading Dashboard Hedgehog, Y Combinator, Dragonfly Back Seed Round

Hedgehog Technologies, a platform that allows investors to sync their cryptocurrency wallets and exchange accounts in order to see their whole portfolio, has received $1.6 million to create a crypto robo-advisor.

The seed round was headed by Dragonfly Capital, with participation from Baroda Ventures and startup incubator Y Combinator.

The investment comes on the heels of Coinbase's acquisition of Zabo, a company that provides a comparable all-in-one portfolio dashboard. Unlike Zabo, which white-labels its service for other businesses, Hedgehog sells its software straight to customers. Aggregators like Plaid and Yodlee have long provided customers with a complete picture of their bank and brokerage accounts in conventional financial services.

Hedgehog now does not collect any fees to its almost 7,000 customers. Instead, the company's founders claim their long-term goal is to charge exchanges a referral fee for encouraging customers to buy cryptocurrency via their platforms.

Hedgehog Technologies should not be confused with Hedgehog Markets, a Solana blockchain-based prediction betting company that just received its own seed round.

Moment of ‘Eureka'

Taylor Culbertson and Colton Dillion, childhood best friends, co-founded the business in 2017. Culbertson and Dillion worked together at Acorns, a mobile fintech platform that enables users to invest spare change in stocks and bonds and employs a robo-advisor to assist them make choices, in addition to growing up together and attending the same college. That firm is now on the verge of becoming public, thanks to a $2.2 billion planned merger with a special-purpose acquisition company.

Culbertson and Dillion found Ethereum after leaving Acorns in the mid-2010s to establish a digital marketing firm. After a freelancing customer refused to pay for services provided, Hedgehog's CEO, Culbertson, came up with the concept of self-executing smart contracts.

After learning more about crypto, Culbertson and Dillion founded Hedgehog, enlisting the help of their brothers.

“We thought to ourselves, 'This is the future.' Culbertson remarked, "This is it."

In retail’s corner 

Hedgehog's robo-advisor function will launch in the next several months, according to Culbertson. It will examine linked accounts on the site and offer recommendations to customers on how to balance their holdings and take advantage of market drops to buy cryptocurrency at a discount.

“A lot of crypto platforms consider retail consumers to be price agnostic,” Dillion said. “Retail flow is in high demand since it allows you to earn a lot of money, particularly in market making. We've chosen the opposite route and are developing a platform for retail customers. We're catering to a consumer who is marginalized in this environment.”

Hedgehog's founders claim that the company's partnership with Hopscotch, the platform's clearing partner managed by Morgan Culbertson, who also serves as Hedgehog's head of trading, would provide customers with pricing that are 0.5 percent lower than those offered by rivals.

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