M1 Finance raises $75 million

M1 Finance, “the Finance Super App” offering automated investing, borrowing, and banking products, announced a $75 million Series D funding round. The round was led by Coatue, with participation from previous investors including Left Lane Capital and Clocktower Technology Ventures. This round follows a $45 million round raised just ~5 months ago.

Founded in 2015, the Chicago-based startup is taking an all-in-one approach, eliminating the need of self-directed investors to deal with a mix of brokers, money management apps, and banks to manage different aspects of their personal finances. The platform offers investors three integrated tools to invest, borrow, and spend, and it also features a premium product – M1 Plus – which goes for $125/yr and includes a range of benefits including custodial accounts, smart transfers, afternoon trade window and more.

The startup is also highlighting some of its achievements:

• Reached over $3.5 billion in client assets just five months after doubling to $2 billion.
• 3X increase in new sign-ups in January 2021 versus December 2020.
• 2.5X growth in new sign-ups between January 26 and February 8 compared to the previous two weeks.
• Reached #10 in the App Store’s finance category and #84 overall on February 8.

“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.” – M1 Finance founder and CEO Brian Barnes.

“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.” – Michael B. Gilroy, General Partner at Coatue.