Zero-Fee Investment Platform M1 Raises $33 Million

Chicago-based Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term M1 Finance that is automating investment and banking has secured $33 million in its recently closed Series B funding round.

Announced on Tuesday, the financing round was led by tech-focused growth equity firm Left Lane Capital and participated by Jump Capital and Clocktower Technology Ventures, along with the existing investors of the Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term.

Founded in 2015, The Chicago-based startup is disrupting the money management industry by automating investing, borrowing, and banking products, with its no-fee platform.

“We’ve built the premier personal finance platform that combines the best of digital investing, borrowing, and banking, and have done so on relatively little funding,” Brian Barnes, founder and CEO of M1, said.

Venture capitals' appetite for fintech startups

In the previous rounds, M1 raised a total of $20.2 million, per Crunchbase.

According to M1, the company is approaching venture capitals less often compared to its fintech peers.

The funding came months after the startup declared that it is handling $1 billion in assets under management (AUM), out of which $650 million was added in 2020 alone. M1, however, is still making losses, but the CEO said that it will break even after reaching the AUM milestone of $3 billion.

“Our clients are intelligent, self-directed investors building long-term, sustainable wealth. We want that to be as easy and automated as possible, while still letting our clients maintain the control they desire,” Barnes added.

“Consumers are highly selective when choosing an investing platform,” Dan Ahrens, partner at Left Lane Capital, said. “The fact that M1 has reached this scale organically, relying mostly on word-of-mouth to grow rather than paid marketing, shows the strength of M1’s product and client relationships. We are grateful to be involved with such an exceptional team and support them in their journey.”