Investment application startup M1 Finance LLC said today it has raised $150 million in a late-stage funding round to develop new products and features and enhance customer service.
SoftBank Vision Fund 2 led the Series E round. Other investors included Coatue Management, Left Lane Capital, Jump Capital and Clocktower Technology Ventures. The funding was raised on a valuation of $1.45 billion, giving M1 Finance “unicorn” status for the first time.
Founded in 2015, M1 Finance pitches itself as providing the “Finance Super App,” an app that helps people manage and grow their money with control and automation. The app offers a range of investment, banking and lending options on a no-fee basis.
Automated brokerage, portfolio lines of credit and digital banking are all automated, with general day-to-day tasks being undertaken by M1 Finance. Users can be more proactive should they wish, with M1 Finance saying they deliver the perfect mix of personalization and automation.
Recent product releases include Smart Transfers, allowing M1 Plus clients to automate financial goals based on pre-set rules; Custodial Accounts, giving M1 Plus parents or guardians the ability to invest in portfolios for younger generations; and Send Check, a service that allows clients to send physical checks from their M1 Spend Plus checking accounts.
The company has seen strong growth. Along with raising four funding rounds, including this one in 12 months, M1 also now has $4.5 billion in total assets under management. The company currently has 265 employees and plans to increase that number to 500 by the end of 2022, the business journal Chicago Inno reported.
“Financial well-being isn’t a luxury, it’s a necessity,” M1 Finance founder and Chief Executive Officer Brian Barnes said in a statement. “Our platform helps people have more control, more freedom and more power over their money.”
Including the new funding, M1 Finance has raised $350 million to date.
Image: M1 Finance
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