Wealth management startup Altruist has announced that it has managed to raise $169 million in investment funds.
Against the background of the mentioned result, the company’s valuation exceeded the important mark of $1.5 billion.
The Los Angeles-based startup received investment funds from Iconiq Growth with the participation of Granite Capital Management, Adams Street Partners, and Sound Ventures.
Altruist aims to compete with Charles Schwab Corp. and Fidelity. The company positions itself as a modern custodian that develops technologies for financial advisors. The startup’s software and apps assist clients solve tasks such as opening accounts, performing trading operations, and creating customized financial models.
Last year, the startup’s revenue grew by more than 550%. The assets managed by the company have tripled in the last two years.
Altruist is largely focused on small advisory firms that are interested in accessing a less costly and more efficient way to expand their business.
Jason Wenk, the founder and chief executive officer of the startup, said during a conversation with media representatives that there is currently an opportunity to improve the technology offerings provided by companies specializing in wealth management. According to him, software has been really bad in this sector in the past.
Altruist also strives to meet the needs of investors who do not receive sufficient service. These efforts of the startup extend, among other things, to low-income brackets. Jason Wenk talks about the big gap between the access the wealthy people have. Separately, he noted that even people with only $10,000 can benefit from wealth management.
Jason Wenk says that the startup’s approach has helped to quickly gain market share. Also in this context, he stated that the IPO is an eventual goal, but it is still several years away from achieving it.
Iconiq Growth’s general partner Yoonkee Sull is on the board of directors of Altruist. He stated that his company invested in Altruist because there is room for innovation in an industry that is slowly changing.
As we have reported earlier, Perplexity AI Raises About $63 Million.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
