Chicago-based fintech startup M1 Finance raises $33 million Series B funding to be the broker for the new app economy
M1 Finance, a Chicago, IL-based fintech startup reinventing personal finance, today announced it has $33 million Series B funding round to accelerate growth. The round was led by Left Lane Capital, a New York-based growth equity firm focused on high-growth consumer internet and technology businesses. Jump Capital and Clocktower Technology Ventures also participated in the round alongside existing M1 investors.
The funding is another milestone in an already strong year for M1. In February, M1 became one of the few fintech startups to reach $1 billion in customer assets and has added more than $650M in customer deposits in 2020. With $21.5M in funding prior to this round, M1 reached the $1 billion AUM threshold faster and with far less funding than many of its fintech peers.
“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 Finance 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.”
Founded in 2015 by Brian Barnes, M1 is an automated money management platform that offers investing, borrowing, and banking products. A broker for the new app economy; M1 Finance aims to be “what Charles Schwab was in the ’70s and ’80s.” M1 helps people manage and grow their money in easy, smart, automated ways – for free – on one integrated, secure platform. By combining investing, cash management, and portfolio lines of credit, M1 provides hundreds of thousands of people with choice and control over their money.
“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. “That is a testament to the team and culture we have here. We’re just getting started and look forward to accelerating our growth with this new funding and strong new partners.”
Before M1, self-directed investors had to use a mix of brokers, money management apps, and banks to manage different aspects of their personal finances, which increased costs and complexity. M1 tackles that challenge by providing investors three integrated tools to build long-term wealth, meet medium-term financial needs, and manage short-term spending, all in one platform.
“The product and team at M1 are true standouts in the fintech ecosystem,” said Dan Ahrens, Partner at Left Lane Capital. “Consumers are highly selective when choosing an investing platform. 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.”