DriveWealth has successfully raised $66.7 million over four funding rounds, achieving a valuation of over $1 billion. The company offers an API-based financial services technology platform that supports fractional investing in US equities and embedded finance solutions.
Keep reading to explore the intricacies of DriveWealth's fundraising journey and the investors backing this innovative platform.
What Is DriveWealth?
DriveWealth, founded by Robert S. Cortright, is a financial technology firm based in New Jersey, with offices in Jersey City and Chatham. The company specializes in embedded finance and fractional investing in US equities, leveraging an API-driven brokerage infrastructure.
Since its inception, DriveWealth has grown to employ between 201-500 people, serving a global market with partners like Revolut, Hatch, MoneyLion, Stake, and Avenue. Their innovative platform enables banks, fintechs, RIAs, and global brands to build investing experiences in 153 countries.
DriveWealth's pioneering technology includes patent-pending solutions for fractionalizing US equities, a milestone they achieved by being the first to receive a license for this in 2015. Their mission is to democratize investing, making it accessible to a broader audience worldwide.
How Much Funding Has DriveWealth Raised?
- Seed Round
- Amount Raised: $4,000,000
- Date: March 2012
- Motivation Behind the Round: To develop the initial platform and technology infrastructure.
- Series A
- Amount Raised: $6,000,000
- Date: July 2015
- Lead Investors: Route 66 Ventures
- Motivation Behind the Round: To expand market reach and enhance product offerings.
- Series B
- Amount Raised: $15,000,000
- Date: April 2018
- Lead Investors: Raptor Ventures, SBI Holdings
- Motivation Behind the Round: To scale operations and enter new international markets.
- Series C
- Amount Raised: $56,700,000
- Date: September 2020
- Lead Investors: Raptor Ventures, SBI Holdings, Point72 Ventures, Route 66 Ventures
- Motivation Behind the Round: To bolster technology and support acquisition strategy.
Total Amount Raised: $81.7M
Current Valuation: $1B (~estimated)
Key Investors
- Route 66 Ventures
- Details: Route 66 Ventures is a venture capital firm that invests in financial technology companies. They focus on early and growth-stage investments.
- Investment Focus Areas: Fintech, Insurtech, Regtech
- Notable Investments: DriveWealth, Betterment, Orchard Platform
- Raptor Ventures
- Details: Raptor Ventures is a private investment firm that provides capital to early-stage companies. They have a diverse portfolio across various sectors.
- Investment Focus Areas: Technology, Consumer Products, Healthcare
- Notable Investments: DraftKings, PillPack, DriveWealth
- SBI Holdings
- Details: SBI Holdings is a financial services company based in Japan, known for its investments in fintech and blockchain technology. They operate globally with a focus on innovation.
- Investment Focus Areas: Fintech, Blockchain, Biotechnology
- Notable Investments: Ripple, Brave, DriveWealth
- Point72 Ventures
- Details: Point72 Ventures is the venture capital arm of Point72 Asset Management, focusing on early-stage technology investments. They leverage their expertise in data and analytics.
- Investment Focus Areas: Fintech, Artificial Intelligence, Enterprise Software
- Notable Investments: Extend, Scale AI, DriveWealth
- MissionOG
- Details: MissionOG is a venture capital firm that invests in high-growth companies in the financial services and data sectors. They provide both capital and operational expertise.
- Investment Focus Areas: Financial Services, Data Analytics, Software
- Notable Investments: Venminder, Divvy, DriveWealth
What's Next for DriveWealth?
DriveWealth stands at the cusp of significant opportunities, driven by the increasing demand for digital financial services. Their Brokerage-as-a-Service model opens doors to partnerships with banks, broker-dealers, and fintech companies, enabling them to offer securities trading to a global clientele. This expansive market potential positions DriveWealth for substantial growth.
Future fundraising efforts could be bolstered by the company's proven track record and the growing interest in fintech innovations. However, challenges such as regulatory compliance across multiple jurisdictions and market volatility remain. Navigating these hurdles will be crucial for DriveWealth as they continue to innovate and expand their reach.
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