Physis Investment — The Impact Investing Platform
The Problem
In the near future, sustainable portfolio reporting will transition from a just trend to a requirement. Other regions such as the European Union have already made such a shift. Under President Joe Biden’s administration, the U.S. is expected to follow suit. In March 2021, the Securities and Exchange Commission (SEC) launched the very first task force on environmental social and governance (ESG) investing. But even with these looming compliance issues for U.S. investors, the existing ESG and sustainable data solutions are often limited, inconsistent and conflicting.
What The Company Does
Physis aims to redefine sustainable data and reporting through leading data partnerships, a proprietary research methodology and in-house collected data. Users on the platform directly upload portfolios to view three main metrics: ESG analysis, impact indicators and sustainable products. There are also a number of different tools such as funds and securities screening to compare financial and impact performance across investment options. Unlike most data providers, Physis does not believe in a “one size fits all” approach to data. Rather than just one simplified score per company for all investors who invest, they assess cumulative impact data or impact created from the unique length each investor has invested in a particular company. Combined with their wide array of sustainability and financial metrics, all investors on the platform can see the full story behind their money.
Market
Physis’ target market are asset managers, institutional investors and financial advisors in the U.S. As of 2019, there are 12,993 registered investment advisors (RIAs) working in the United States. U.S. assets under management (AUM) amounts to $17.1T at the start of 2020, a 42% increase in just 2 years. This number is expected to grow in the coming years given the rapid growth of the ESG industry. In terms of competitors, other sustainable data providers are Morningstar, MSCI ESG, Clarity AI, and Open Invest. What sets Physis apart is their merging of both financial and sustainable data, accessibility of the platform for both institutional and individual investors and partnerships with leading data providers to provide the most comprehensive data hub possible.
Business Model
Their business model is a simple subscription fee that changes based on tools required, number of users and type of investor.
Traction
Following multiple rounds of beta testing, the Physis platform soft launched in March 2021. Physis is currently filling their first round of early adopters. While still in beta, Physis’ platform was tested by over 300 users and served as a tool to help transition $90B of client assets from traditional to sustainable investment. In their growth, Physis has been lucky enough to benefit from a number of accelerator and incubator programs including Harvard Innovation Labs, Fintech Sandbox, EMRG, One Valley, Female Founders Alliance, The Capital Network, Startup Boost, All Raise and Plug and Play.
Founding Team Background
The Physis team is led by Stefania Di Bartolomeo, a Harvard graduate, university lecturer, board member and one of the first female impact investors and fund managers in Europe. She has a long history of sustainable investment consulting and has built a team around her that is invested and dedicated to sustainability far beyond their work at Physis. The Physis team consists of 15 people and is extremely diverse, with members from five different countries. The company is entirely women led, which is a rarity in the financial services industry.
The Ask
Physis is in growth mode and would love introductions to early stage fintech investors. Additionally, they are in the process of filling their first class of early adopters and welcome sign ups. Connect With The Physis Investment Team.
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