Former YouTube product manager Kevin Xu, also known as “Sir Jack A Lot” on Reddit, has built a startup called AfterHour that aims to provide retail investors with a platform for transparent and accountable investing. AfterHour allows users to link their stock brokerage accounts and share their investments on a social feed under a chosen username. Xu believes that transparency and credibility are essential in the investing space and wants to create a community that discourages scammers and grifters.
Since its launch in April 2022, AfterHour has gained over 23,000 users, with more than 70% of them using the app daily. The company recently raised a $4.5 million seed round led by Founders Fund and General Catalyst. Xu’s focus is currently on growing the user base and the team, with plans for monetization in the future.
AfterHour’s approach of allowing users to be pseudo-anonymous is one of the reasons for its success. Xu understands the need for accountability to prevent bad actors and scams, and the platform only allows users to post their actual trades. The startup monitors posts and flags anything suspicious, implementing warnings and community notes similar to other community-based moderation approaches.
As the platform continues to scale, AfterHour is working on plans to curb bad behavior, including the possibility of an algorithm that can automatically flag fake posts. Xu acknowledges that building services for retail investors is a smart play, as it provides an opportunity for average people to participate in the stock market. Retail trading has seen significant growth, with Robinhood alone experiencing over $86.6 billion in trading volume in May 2023.
AfterHour is not the only company recognizing the potential of this space, as Robinhood has expanded into media with acquisitions like the Snacks newsletter and the launch of Sherwood Media, a financial publication targeted at retail investors. Xu hopes that AfterHour will expand into other areas of finance in the future, becoming a one-stop-shop for retail investors.
Ultimately, Xu sees AfterHour as part of the evolving internet of finance and aims to make investing fun and accessible. He believes that investing is more entertaining than sports and that a growing number of people online share this sentiment.
