Covestor announced on Thursday that it had acquired $12.75 million in Series B financing through investments made by several firms. The round included Spark Capital, Amadeus Capital Partners, Bay Partners, and Union Square Ventures. Coverstor is Internet-based investing marketplace.

The acquisition increases Covestor's total capital to $28 million.

The funds raised are to be spent on the company's growth acceleration, said Covestor. The company also said that it aims to provide investors connections to alpha-focused portfolio managers via the Internet. Their website, covestor.com, has 100 portfolios available online.

Covestor boasts that the 10 most popular managers invested in their portfolios rated higher that the Standard & Poor's 500 Index.

The company recently named Sanjoy Chosh as its new Chief Investment Officer.

""Research has shown that smaller, more nimble managers can outperform large hedge funds,"  Ghosh said.  "This is why we are excited to help investors connect with portfolio managers we specifically select from thousands of people who propose to offer their products on Covestor's marketplace," he added.