Total amount raised
$66.7 Millions
Latest funding date
9/1/2020
Location
DriveWealth has successfully raised significant capital through multiple funding rounds, attracting a diverse group of investors. The company's innovative platform offers a range of financial services, including fractional share investing and self-directed trading.
Keep reading to explore the intricacies of DriveWealth's fundraising journey and the investors backing this transformative fintech platform.
What Is DriveWealth?
DriveWealth, founded in 2012 by Robert Cortright, is headquartered in Jersey City, New Jersey. The company specializes in providing a comprehensive suite of APIs for trading, investment, retirement, and rewards solutions. With a workforce of 251-500 employees, DriveWealth empowers partners globally to offer fractional share investing and self-directed trading services.
How Much Funding Has DriveWealth Raised?
- Seed Round
- Amount Raised: $10.5M
- Date: March 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company's foundational technology and initial market entry.
- Series A
- Amount Raised: $12.5M
- Date: April 2015
- Lead Investors: Route 66 Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product offerings and scale operations.
- Series B
- Amount Raised: $21.1M
- Date: November 2017
- Lead Investors: Point72 Ventures, Raptor Group, Route 66 Ventures, SBI Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technological capabilities and expand into new markets.
- Series C
- Amount Raised: $56.7M
- Date: October 2020
- Lead Investors: Point72 Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and support global expansion.
- Series D
- Amount Raised: $450M
- Date: August 2021
- Lead Investors: Accel, Insight Partners
- Valuation at Round: $2.85 billion
- Motivation Behind the Round: To support product and service expansion, talent acquisition, and technology innovation.
DriveWealth has raised a total of $550.8M in funding. The current valuation is $2.85 billion.
Key Investors
- Accel
- Details: Accel is a global venture capital firm that partners with exceptional teams from inception through all phases of private company growth. They have a strong track record of investing in technology companies.
- Investment Focus Areas: Technology, internet, software, mobile sectors.
- Notable Investments: Facebook, Dropbox, Slack.
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm investing in high-growth technology and software companies. They have raised over $30 billion and have a portfolio of more than 400 companies worldwide.
- Investment Focus Areas: Software, internet, data services.
- Notable Investments: Twitter, Shopify, DocuSign.
- Point72 Ventures
- Details: Point72 Ventures is the venture capital arm of Point72 Asset Management, focusing on early-stage technology companies. They aim to support innovative companies and help them grow.
- Investment Focus Areas: Financial technology, artificial intelligence, enterprise technology.
- Notable Investments: Acorns, Extend, Quantopian.
- Raptor Group
- Details: Raptor Group is an investment firm focused on sports, media, entertainment, and financial services. They have a diverse portfolio and a strong presence in the fintech sector.
- Investment Focus Areas: Sports, media, entertainment, financial services.
- Notable Investments: Uber, Airbnb, DraftKings.
- Route 66 Ventures
- Details: Route 66 Ventures is a venture capital firm that invests in financial services and technology. They focus on supporting companies that are transforming the financial landscape.
- Investment Focus Areas: Financial services, technology.
- Notable Investments: Kabbage, Orchard, LendUp.
What's Next for DriveWealth?
DriveWealth stands at the cusp of significant opportunities, driven by the rising demand for API-based brokerage technology and embedded investing experiences. With $450 million raised in its Series D round, the company is well-positioned to expand its product and service offerings, acquire top talent, and innovate its technology. The launch of self-clearing services and strategic acquisitions will further solidify its market presence.
Future fundraising opportunities seem promising, given the company's ambitious growth plans and the substantial backing from investors like Insight Partners and Accel. However, DriveWealth will need to navigate challenges such as intense competition, integration of new acquisitions, and regulatory compliance across different markets. Successfully managing these hurdles will be crucial for sustaining its growth trajectory.
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