Kevin Xu, once known as the enigmatic “Sir Jack” from WallStreetBets, has shed his anonymity and emerged as a prominent figure in the startup world with his new venture, After Hour. Previously famous for turning $35,000 into millions during the meme stock craze, Xu now leads After Hour, a social trading app that recently secured a $4.5 million seed round led by Founders Fund and General Catalyst, among others.
Reflecting on his journey, Xu described the stock market as the ultimate reality TV show, filled with twists and turns akin to a thrilling drama. His transition from anonymous trader to startup founder marks a significant shift, aiming to address a generational and informational gap in the finance industry. For Xu, After Hour represents a platform that speaks directly to day-trading Redditors and other non-traditional investors who may not resonate with conventional financial advisors.
Central to After Hour’s mission is bridging credibility and transparency within the realm of retail investing and social media. While platforms like Robinhood offer social features, they often lack comprehensive tools for verifying user information and ensuring trustworthiness—a gap Xu aims to fill. He envisions After Hour as a unified platform where verified users can engage in brokerage activities while accessing reliable educational resources.
Despite the popularity of WallStreetBets and the surge in retail trading, Xu acknowledges the challenges of building trust in this space, where misinformation and scams are prevalent. Nevertheless, the potential market is substantial, with millions of users actively participating in online trading communities. Xu’s vision for After Hour extends beyond niche appeal, aiming to establish a mainstream presence by leveraging his deep understanding of the user base and their needs.
While skepticism exists about the scalability and market potential of After Hour, investors like Niko Bonatsos from General Catalyst see parallels with successful consumer-facing platforms like Airbnb and fantasy football. These platforms initially catered to niche audiences but eventually achieved broad adoption, driven by founders who intimately understood their communities.
For Xu and After Hour, the bull case hinges on capturing a significant share of the growing retail investing market and potentially disrupting traditional financial institutions. With retail investing on the rise and platforms like Robinhood paving the way, After Hour seeks to position itself as the next evolution in social trading, appealing to a new generation of tech-savvy investors.
In summary, Kevin Xu’s journey from WallStreetBets guru to startup founder underscores the evolving landscape of retail investing and the transformative potential of social trading platforms like After Hour. As the app continues to expand and innovate, its success will depend on navigating the complexities of trust, scalability, and market adoption in the competitive fintech industry.