M1 Finance

M1 Finance provides automated investment services to individuals, specifically targeting self-directed investors. Clients can select pre-built investment portfolios (known as Expert Pies) that meet their risk-return objectives and time horizons. In addition, clients can also customize their own portfolios by selecting exchange-traded funds (ETFs), stocks and cryptocurrencies of their choice, or even combine it with the Expert Pies. The platform features portfolio rebalancing, automatic depositing (a fixed proportion of income is deposited to the investment account periodically), investment vehicles (ETFs, money-market funds, and stocks), and fractional shares (purchase a proportion of stock or ETF). In addition to investment products, M1 Finance also offers checking accounts (1% APY), and allows clients to borrow up to 35% of the portfolio value, at borrowing rates between 2%-3.5%.

As of July 2021, the company had over USD 4.5 billion in Assets Under Management (AUM), which had tripled over the previous year as customers doubled over the same period. As of the same date, the company reported around 265 employees with plans to staff 500 by the end of 2022.

Funding and financials

In July 2021, the company raised USD 150 million in a Series E funding round led by SoftBank Vision Fund to help launch new products, develop the company’s platform, and expand its workforce.