SoftBank-backed DriveWealth raises $450m at nearly $3bn valuation

SoftBank-backed DriveWealth has raised $450m in fresh capital as part of a late-stage financing round co-led by Insight Partners and Accel, valuing the fintech firm at $2.85bn.

The funding round also includes investments from Greyhound Capital, SoftBank Vision Fund, and billionaire investor Steve Cohen’s Point72 Ventures, DriveWealth.

Founded in 2012, DriveWealth offers technology that allows companies to offer fractional trading services. So-called fractional shares are offered by many brokerages, letting investors buy a slice of a share instead of the whole thing.

 

Join 120,000 other PE professionals and subscribe to our weekly newsletter
Learn More

Subscribe to our Newsletter to increase your edge. Don’t worry about the news anymore, through our newsletter you’ll receive weekly access to what is happening. Join 120,000 other PE professionals today.

The trading frenzy centered on GameStop Corp and other “meme” stocks is sparking a wave of investor interest in start-ups aiming to mimic the success of Robinhood Markets Inc, whose no-fee brokerage app has helped drive a trading boom. 

Investors also see opportunity in the infrastructure behind the trading apps, powered by companies such as DriveWealth.

“We are in the early innings of a worldwide retail investing revolution,” said Bob Cortright, founder and Chief Executive Officer of DriveWealth.

DriveWealth’s latest funding round also included a follow-on investment from Fidelity International and several new investors including Base 10, FTX, and FlightDeck.

Source: Reuters

Can’t stop reading? Read more