Chicago-based fintech 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.
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.
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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.”