The whole VC ecosystem is talking about slowing funding, but AI-powered fintech platforms tiffin Seems to be a glaring exception.
The Boulder, Colorado-based startup that aims to match investors with investments in the wealth and asset management industry, announced today that it has raised a $109 million Series D round of funding, the latest from October’s The Series C financing is less than a year old. The round valued the company at $842 million, nearly double its post-Series C valuation of $447 million.
Investment manager Franklin Templeton and fintech venture capital firm Motive Partners joined the latest funding round as new investors, the company said. Existing investors also participated in the round, including private market advisory firm Hamilton Lane, JPMorgan, Morningstar and Broadridge. Motive Partners founder Rob Heyvaert will join Tifin’s board as part of the raise.
CEO and founder Vinay Nair told TechCrunch that the company closed Series A to D rounds in 18 months, raising a total of about $204 million in funding.
Tifin operates two main divisions – a consumer investment marketplace called Magnifi, and a B2B division that works with wealth advisors and businesses that provide financial services to consumers. Within its division, Nair said, it operates a suite of seven products, some of which are homegrown and some of which come to the platform through acquisitions.
According to Nair, since the Series C, the firm has acquired Qualis, which is focused on bringing private market investments to retail investors — an area of growing interest for wealth managers seeking to provide clients with access to public markets. differentiated returns. Tifin is also focused on international expansion, and its non-U.S. revenue has grown 2.5x since its last fundraise.
Nair said the company’s workforce has doubled from 150 in October to 300 today, illustrating the company’s recent rapid growth. According to Nair, Tifin’s products directly reach 3 to 4 million people, many of them through its network of about 3,000 financial advisors.
“After this round, we’re trying to be profitable,” Nair said. “We’re at a stage where the focus so far has been almost entirely on revenue growth, and now it’s on both revenue and profit.”
Nair said Tifin aims to see the B2B segment of the business become profitable within the next 12 months, while the consumer side of the company is still in the early stages of growth and customer acquisition.
With the new funding, Tifin plans to invest in products such as Magnifi’s search engine to help investors find opportunities and continue to expand the company’s presence in international markets, Nair said.
He also noted that the company is building out its data capabilities, investing in products it builds for asset managers to improve their distribution based on that data.
“We believe we can become the largest single data platform for wealth and investing,” Nair said.
In wealth management, Nair attributes the firm’s recent success to its focus on advisor-client interaction and personalizing the experience, an area of expertise that sets it apart from the rest of the “mid-office-focused” ecosystem. technical point of view.
“We work with entire intermediaries, not just advisors. We can talk to consumer finance companies, tech companies like SoFi, PayPal or Mint. These are all potential channels for people to get wealth advice – we’re not limited to financial advisor,” Nair said.
While hiring has been challenging for the company, similar to many startups, the brain drain of traditional finance and technology roles has created opportunities for Tifin, Nair said. He said he also wants to enhance the company’s capabilities during potential market downturns, although he also sees this as a potential opportunity for Tifin to differentiate itself from less-technical rivals.
“We thought it would help us because in some ways digital distribution was more funded than traditional distribution because it was more efficient. If you look at it, during the dot-com crisis , people are spending more on Amazon, not less. So in some ways, we think this will be the first time asset managers are seeing this shift,” Nair said.