Chicago-based M1 Finance announced today a $45 million Series C funding round, led by Left Lane Capital.
The latest fundraising builds on a $33 million Series B round that closed in June. Other M1 investors include Jump Capital and Clocktower Technology Ventures.
M1 offers a free, customizable, no-minimum and zero-commission investing platform with fractional shares and automation, similar to Robinhood. Where it differs, however, is in its offering of different accounts: brokerage, IRA, trust, and it’s ability to manage and rebalance a customized portfolio over time and its lending and cash management services.
M1 users with a minimum of $10,000 can borrow against 35% their account balances at a 3.5% -- a paid premium tier of M1’s services offers users a 2% annual interest rate.
But M1 does not offer users financial advice, make recommendations or offer users the ability to link parts of their portfolios to specific financial goals -- it occupies a space between a wide-open investment app like Robinhood and a goal- and risk-oriented robo-advisor.
According to M1 Finance, more than 500,000 investors now have more than $2 billion in assets on its platform.
“The perfect finance account will manage all of a person’s finances and optimize them according to the individual’s unique wants and needs,” said founder and CEO Brian Barnes in released comments. “M1’s platform is furthest along in making this vision a reality and this fundraise lets us move faster towards that ideal.”