Total amount raised
$66.7 Million
Latest funding date
9/1/2020
Location
DriveWealth has successfully raised significant funding through five rounds, attracting investments from notable venture capital firms such as SoftBank Vision Fund and Fidelity International. The company's innovative platform offers a Brokerage-as-a-Service model, enabling global clients to trade and invest via their phones.
Keep reading to explore the intricacies of DriveWealth's fundraising journey and the investors backing this pioneering financial technology platform.
What Is DriveWealth?
DriveWealth is a visionary technology company based in Jersey City, New Jersey, specializing in financial services and fintech. The company operates in various industries, including AI, cloud infrastructure, cryptocurrency, and wealth management. With a workforce of 251-500 employees, DriveWealth empowers over 100 partners globally through its innovative platform.
Founded to democratize investing, DriveWealth offers a Brokerage-as-a-Service model, enabling businesses to provide trading and investment services via an API-based technology platform. The company is known for pioneering fractional share investing and supports a wide range of financial products, including US equities, ETFs, mutual funds, fixed income, and options.
How Much Funding Has DriveWealth Raised?
- Seed Round
- Amount Raised: USD 10,500,000
- Date: March 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial platform and technology for democratizing investing.
- Series A
- Amount Raised: USD 12,500,000
- Date: April 2015
- Lead Investors: Route 66 Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's capabilities and increase market reach.
- Series B
- Amount Raised: USD 21,100,000
- 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 technology infrastructure and support global expansion.
- Series C
- Amount Raised: USD 56,700,000
- Date: October 2020
- Lead Investors: Point72 Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and introduce new financial products.
- Series D
- Amount Raised: USD 450,000,000
- Date: August 2021
- Lead Investors: Accel, Insight Partners
- Valuation at Round: USD 2.85 billion
- Motivation Behind the Round: To support product and service expansion, talent acquisition, technology innovation, and global expansion.
Total Amount Raised: USD 550,800,000. Current Valuation: USD 2.85 billion.
Key Investors
- Accel
- Details: Accel is a global venture capital firm that invests in early-stage and growth-stage technology companies. Founded in 1983, Accel has a strong track record of backing successful startups.
- Investment Focus Areas: Technology, Internet, Software, Mobile, Enterprise, Consumer Services
- Notable Investments: Facebook, Dropbox, Slack, Spotify
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm investing in high-growth technology and software companies. Founded in 1995, the firm has raised more than $30 billion in capital commitments.
- 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. The firm leverages its deep industry expertise to support innovative startups.
- Investment Focus Areas: Financial Technology, Artificial Intelligence, Enterprise Technology
- Notable Investments: Acorns, Extend, Quantopian
- Raptor Group
- Details: Raptor Group is an investment firm that focuses on high-growth sectors such as sports, media, entertainment, consumer, and technology. The firm is known for its strategic investments and partnerships.
- Investment Focus Areas: Sports, Media, Entertainment, Consumer, Technology
- Notable Investments: Uber, Airbnb, SpaceX
- Route 66 Ventures
- Details: Route 66 Ventures is a venture capital firm that invests in financial services, fintech, and insurance sectors. The firm aims to support companies that are transforming the financial landscape.
- Investment Focus Areas: Financial Services, FinTech, Insurance
- Notable Investments: Betterment, Kabbage, OnDeck
What's Next for DriveWealth?
DriveWealth stands at the cusp of significant opportunities, driven by its recent $450 million Series D funding. The company aims to expand its product and service offerings, acquire new talent, and innovate its technology. With a valuation of $2.85 billion, DriveWealth is poised to become a leader in embedded investing, offering fractional trading and self-clearing services globally.
Future fundraising opportunities seem promising, given the company's aggressive growth plans and the substantial backing from high-profile investors. Strategic acquisitions and partnerships are also on the horizon, aimed at enhancing DriveWealth's technology and market presence. However, the company may face challenges such as competition from other fintech firms, regulatory hurdles, and the complexities of integrating new technologies.
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