Scoop: M1 Finance nearing $4B in assets, planning expansion
Fintech company M1 Finance is now "approaching $4 billion" of assets under management, the company's CEO tells me on the latest Voices of Wall Street podcast, nearly double what it announced in October.
Why it matters: M1 is staking its claim as an alternative to the gamification of investing popularized by apps like Robinhood but also an alternative to traditional asset management shops like Fidelity and Schwab.
By the numbers: The Chicago-based firm is growing at a bristling pace. The company announced a $75 million Series D funding round on March 9, revealing that it had grown to $3.5 billion in assets under management.
- Having now reached "just under" $4 billion of AUM, as CEO Brian Barnes revealed on the podcast, the company has added close to $500 million in about two weeks.
Timeline: M1 was founded in 2015, reached $1 billion of AUM in February 2020, and has "4xed over the last 13 or 14 months," Barnes added.
- The company also has grown from less than 100,000 funded customers to "over half a million" over the last year.
What's next: "We'll move into other forms of borrowing, whether that's mortgages, HELOCs, personal loans, auto loans," Barnes says.
- "We're moving into the credit card space so that we'll be able to have higher rewards, higher spending limits, more personalized things."