FinTech: Fractional Trading Provider DriveWealth Snags $450M At $2.85B Valuation

DriveWealth’s Series D round was co-led by Insight Partners and Accel.

DriveWealth last week raised $450 million in a Series D round co-led by New York-based global private equity and venture capital investors Insight Partners and Accel, with significant participation by Greyhound Capital, Softbank Vision Fund, and Series C lead Point72 Ventures. New investors including Base 10, FTX, and FlightDeck also participated. The round valued the fintech at a sizable $2.85 billion. (DriveWealth)

Drivewealth is one of the pioneers in fractional trading. It also allows its investment infrastructure to be embedded inside the applications of other fintech players through a financial API. Emerging and new investors, particularly retail, get access to US markets and can begin investing with minimal amounts as low as $1.

It counts MoneyLion, Stake and Revolut among its clients.

“We are in the early innings of a worldwide retail investing revolution,” said Bob Cortright, founder and CEO. “Our goal is for DriveWealth to be the partner of choice to deliver the embedded investing experience of the future.”

The retail investing boom is for real. DriveWealth-powered trading volume in the first half of 2021 has already exceeded that of the entire 2020, according to Insider Intelligence.

DriveWealth: Use of funds

The firm will use the funds to cement its position as the preferred provider of embedded investing for digital wallets and brokerage apps globally. It will also use the funds to expand its products and services, hiring, technological development and self-clearing.

“This new capital and investor engagement will accelerate our global expansion plans in order to become the world-class, exchange-like technology company that powers tomorrow’s investing products,” added Cortright.

It may also use the funds for deal-making. In January, it acquired broker-dealer Cuttone & Company to enable clients to offer institutional-level trading services like direct access to the NYSE securities’ point-of-sale.

Last month, DriveWealth made its ETF debut with the launch of two fixed income funds that seek to deliver a pre-determined level of yield while minimizing portfolio risk.

Related Story:    Revolut Valued At $33B In $800M Funding Round

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