FinTech: Robo-Advisor App M1 Finance Charts Torrid Growth

September 14, 2020 | FinTech, News
https://dailyalts.com/wp-content/uploads/2020/09/screenshot-www.m1finance.com-2020.09.14-13_54_37.png

The automated money management platform surpassed the $2 billion mark in assets.

M1 Finance, which calls itself the “Finance Super App,” announced September 9 that it had achieved the $2 billion landmark in assets managed on its platform. It did this within just six months after hitting the $1 billion asset mark in late February 2020. (Chicago Business Journals)

It also said it added 229,000 new brokerage accounts since that time – solid growth of 83%. M1 Finance has intelligent tools on its platforms. These allow investors to create customized portfolios, borrow against those portfolios, and route these transactions through a checking account. It charges no commissions or management fees.

“Self-directed investors who want to build wealth over the long term are hungry for a finance ‘super app’ like M1,” said M1 Finance CEO Brian Barnes. “We give investors complete control of managing their money in one place while leaving it to our technology to take care of the tough work like portfolio balancing, reinvesting, and money movement.”

M1 Finance: June funding proves propitious

M1 Finance last raised capital of $33 million in June in a Series B round led by Left Lane Capital. Jump Capital and Clocktower Technology Ventures also participated.

The funding round brought M1’s cumulative funding to $54 million.

According to Chicago Inno, the total amount raised by M1 is far less than some of it’s biggest peers, such as Betterment, Wealthfront, Acorns and Stash. The latter firms have raised capital north of $200 million.

M1 also said in a release that it reached both the $1 billion and $2 billion AUM thresholds faster “than any of its fintech peers, like Wealthfront, Betterment and Acorns.”

Word of mouth

Moreover, M1 said it achieved its rapid growth on a marketing budget that was “a small fraction of its competitors.”

It attributed this to strong word of mouth from its user base.

“Our record number of account signups and net inflows on M1 is evidence that our platform is solving financial challenges for people, so much so they want to talk about it with their families and friends,” said Barnes. “Investors are tired of the work required to manage their money across many apps and banking providers, and they are desperate for an app that combines investing, borrowing, and banking in one.”

Related Story:   Robinhood, the Fee-Free Trading App, Raises $320M At $8.6B Valuation

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…