Former Credit Suisse bankers Luba Schoenig and Tonia Zimmerman are propelling the Swiss-based fintech startup Umushroom. They aim to revolutionize investment advice through a user-centric digital platform that enhances financial education. Recently, they achieved a significant milestone.
Luba Schoenig and Tonia Zimmermann have established their operations base in a former factory hall in Zurich's District 5. Here, the founders of the fintech start-up Umushroom work with nearly ten employees in Switzerland.
They launched their venture four years ago to «redefine investment advisory services». Umushroom is dedicated to building a digital marketplace where a «community» of users can learn about investments and gain financial literacy. At the time of founding, both entrepreneurs had long and successful careers in banking behind them.
Background and Career Paths
After studying business administration and finance at the University of Fribourg and earning a doctorate in Zurich, Luba Schoenig spent two years at Lehman Brothers constructing and selling structured products. She later joined Credit Suisse, working in the structured products area.
From 2010 to 2014, she was responsible for «UHNWI Investment Solutions» for the markets of Eastern Europe, Russia, and Israel at Solution Partners, and immediately before starting her own business, she was in advisory services for ultra-high-net-worth clients at Bank Julius Baer.
Zimmermann's career ran parallel: after studying economics and financial markets at the University of St. Gallen (HSG), she worked in structuring and selling derivatives at J.P. Morgan and Goldman Sachs. She later moved to Credit Suisse, where she held leadership positions in the «Structured Products and Investment Funds» area and met Schoenig. From 2016 to 2020, she also switched to advisory services as «Head of Premium Clients Advisory & Sales.»
Birth of the Umushroom Platform
In retrospect, they say it is remarkable how little they understood about the practice of investing immediately after their studies. «We knew exactly how to calculate options – but not how to properly invest,» explains Zimmermann. And if it were the same for them as economists with academic credentials, then most people would be even less familiar with the art of investing.
This is the market gap that Umushroom operates in. On its platform, Umushroom aims to provide the tools for anyone to «become their own investment advisor.»
«We both have extensive experience in the production, selection, and advisory of financial products,» Schoenig summarizes the career paths of the two entrepreneurs before founding Umushroom. This knowledge and experience flow into the design of the platform.
Around 200 Cryptocurrencies
From a business model perspective, the company functions like a kind of LinkedIn for people who want to become proficient in investing, explains Zimmermann. «We serve two markets: the providers of investment products who want to market their products to investors, and individuals who want to learn about investing to take control of their finances.»
How has the experience been so far? According to the founders, they are doing well with securities: the platform provides information on all approved ETFs and investment funds, as well as around 5,000 stocks and 200 cryptocurrencies.
«Independence is Central to Us»
Umushroom does not charge for the mere placement of products. «We want all products to be visible, and independence is central to us,» says Schoenig. However, Umushroom has contracts with various asset managers who proactively want to promote their products to investors. These include names like Invesco, Robeco, Bellevue, and Amundi.
On the B2C side, Zimmermann says Umushroom has gathered around 7,000 users so far. The number is growing daily, and the training programs launched in the spring have been met with great interest.
More Expensive Training Program
«The subscription for 9.90 francs per month is aimed at a younger audience that wants to acquire investment knowledge independently. The more expensive training program for 333 francs per month is a very interactive program that provides practical financial knowledge to manage one's finances,» explains Zimmermann.
The company is generating solid revenues but is not yet break-even. After the founders financed the first two years themselves, a lead investor has been on board for the past two years.
