- After a slump earlier this year, global funding for wealth management-tech rebounded in the third quarter, according to data from CB Insights.
- Global wealth-tech funding nearly doubled to $761 million from $422.7 million in the prior quarter.
- Robinhood's $323 million Series E in July was the largest wealth-tech deal for the quarter, and pegged the stock-trading app's valuation at $7.6 billion, by the company's measure.
- The rise in funding reflects the "globalization" of digital brokerage platforms, Lindsay Davis, a senior analyst at CB Insights, told Business Insider.
- Visit BI Prime for more stories.
After a slump earlier this year, funding for wealth management-tech rebounded in the third quarter, according to data from CB Insights.
Global wealth-tech funding nearly doubled to $761 million across 39 transactions, up from $422.7 million across 38 deals in the second quarter. That wealth-tech category included investment and wealth management platforms as well as analytics tools.
Lindsay Davis, a senior analyst at CB Insights, told us the rise in funding reflects the globalization of digital stock trading.
"You're starting to see these things emerge on a global scale," Davis said in an interview, pointing to emerging wealth-tech across some Asian countries.
Robinhood's $323 million Series E round in July, led by DST Global and at least three other investors including Sequoia, marked the quarter's largest wealth-tech deal, according to CB Insights.
That funding pegged the stock-trading app's valuation at $7.6 billion, by the company's own measure.
The next four largest wealth-tech investments, by CB Insights' count, were fall smaller than Robinhood's round.
Here's a look at the third quarter's five largest wealth-tech deals, which CB Insights provided Business Insider.
The jump in venture investment comes as US wealth management and stock-trading has become more crowded and competitive, with legacy players vying for younger consumers' dollars — and catering to their expectations for low- or no-commission accounts.
Towards the end of the third quarter, the largest discount brokerages, including Fidelity, Charles Schwab, and TD Ameritrade, slashed online trading commissions for US stocks and ETFs for US customers.
And the market for advisers' wealth planning tech has become similarly competitive, with industry giants like Envestnet and Fidelity in recent years buying up providers MoneyGuide and eMoney Advisor.
Robinhood
Company: Zero-commission stock-trading app Robinhood, founded in 2013.
Funding: In July, the company raised $323 million in a Series E round.
Investors: The firm DST Global led the round. Investors including Ribbit Capital, NEA, Sequoia, and Thrive Capital participated in the funding the company said pegged its valuation at $7.6 billion.
Source: CB Insights, the company
Moneyfarm
Company: Moneyfarm, launched in Italy in 2012, is a European robo-adviser. Only US citizens who are also UK residents can invest with Moneyfarm.
Funding: In September, the company raised £36 million, or some $44 million, in a Series C funding round.
Investors: Poste Italiane, an Italian postal and financial services firm, led the round, with a contribution from Allianz Asset Management. Allianz Group has been Moneyfarm's lead minority investor since May.
Source: CB Insights, the company
Fumi Technology
Company: Fumi Technology is a three-year-old Chinese fintech company that operates Webull, a zero-commission US stock trading app.
Funding: In July, Fumi Technology said it raised 250 million yuan, or $36.27 million.
Investors: The round was led by Chinese wealth management firm Noah Wealth's venture capital arm, Gopher Asset.
Source: CB Insights, the company
DeCurret
Company: DeCurret, a Japanese digital currency exchange, was founded in January 2018.
Funding: The company said in July it raised 3.4 billion yen, or some $31 million. At the time, DeCurret had already raised 8.63 billion yen, or just over $79 million, to build out a new digital currency settlement platform.
Investors: DeCurret said Internet Initiative Japan was the lead investor, along with 11 others, including Meiji Yasuda Life Insurance and Sumimoto Life Insurance.
Source: CB Insights, the company
Raisin
Company: Raisin, a Berlin-based savings fintech, was founded in 2012 and launched in 2013.
Funding: Raisin raised 25 million euros — or $28 million — to expand into new European markets and fund a US launch scheduled for 2020. At that point, Raisin said it had raised 195 million euros.
Investor: Goldman Sachs.
Source: CB Insights, the company