M1 Finance secures $75mn in Series D, raised $153mn in just 9 months
By Pavithra R
Chicago based M1 Finance, the Finance Super App that offers automated investing, borrowing and banking products, has announced that the company has raised $75 Mn in a Series D funding round, led by Coatue, a tech-focused investment firms.
The new investment follows the company’s recent Series C funding $45 mn and $33 mn Series B rounds that took place last year. The finance round also saw participation from previous investors, including Left Lane Capital and Clocktower Technology Ventures.
“Wealth is built through long-term ownership, not gambling on short-term price movements. Our mission at M1 is to empower people to improve their financial well-being. We do this through free automated investing in a customizable portfolio, lower cost and accessible borrowing, and flexible spending with great rewards. While our product is a joy to use, our focus is on improving our clients’ finances, as opposed to their financial entertainment. Our Series D will allow M1 to continue innovating to better empower our customers,” said M1 Finance founder and CEO Brian Barnes.
The announcement comes during a period of rapid growth acceleration for M1 finance, including:
- Reaching over $3.5 bn in client assets just five months after doubling to $2 bn.
- 3X increase in new sign-ups in January 2021 vs December 2020.
- 2.5X growth in new sign-ups between January 26 and February 8 compared to the previous 2 weeks.
- Reached #10 in the App Store’s finance category and #84 overall on February 8.
The FinTech will use the funding to continue building enhanced investor experience with tools and services that automate life-long, positive financial habits. The firm also expects to double employee headcount to nearly 300 by the end of 2021, up from just 40 employees at the beginning of 2020.
“We seek out, and invest in, companies that we think are innovative, impactful and built for the long term. We think that M1 Finance has all of these hallmarks, and we are excited to see its impact on the future of personal finance. We are proud to partner with their team both now and into the future as M1 continues to build out its platform,” said Michael B. Gilroy, General Partner at Coatue.
Founded in 2015, M1 is a FinTech company determined to reinvent personal finance. The company is a member of FINRA/SIPC m1.finance/legal.