M1 Finance announced it’s raised $33 million in a Series B funding round. It will use the funds to accelerate its growth. The funding round was led by Left Lane Capital with Jump Capital and Clocktower Technology Ventures also participating in the round alongside M1’s existing investors.
This funding round marks another milestone in what’s already been a strong year for M1. In February, the company became one of the few fintech startups to reach $1 billion in customer assets. M1 has also added more than $650 million in customer deposits in 2020. Having raised $21.5 million in funding prior to this Series B funding round, M1 was able to reach the $1 billion AUM threshold faster than many other fintech companies.
“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,” said M1 founder and CEO Brian Barnes. “With M1, you can build an entire wealth strategy in only a few clicks, down to individual stocks and ETFs. We take it from there, handling all the day-to-day optimization, rebalancing, and re-investing according to your instructions so you can spend more time building strategies and less time executing them.”
“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,” Barnes added in a statement.
Prior to the launch of M1, self-directed investors had to use a mix of brokers, money management apps and banks to manage their personal finances. With M1, investors can use the platform to build their wealth, meet their financial needs and manage short-term spending.
“Consumers are highly selective when choosing an investing platform,” Dan Ahrens, Partner at Left Lane Capital, shared. “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.”
Founded in 2015 by Brian Barnes, M1 has now raised a total of $54.5 million in funding.
