M1 Finance, the automated money management platform for investing, borrowing, and banking, announced it surpassed $2 billion in assets on its platform, just six months after hitting the $1 billion asset mark.
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M1 reached both the $1 billion and $2 billion AUM thresholds faster and with far less funding than any of its fintech peers, like Wealthfront, Betterment, and Acorns.
The $2 billion asset milestone follows on the heels of M1 Finance’s June 2020 $33 million funding round, which brought its total venture funding to $54.5 million.
Doubling-Down on Growth
Since reaching the $1 billion AUM milestone in late February 2020, M1 has added 229,000 new brokerage accounts – representing 83 percent growth over this period.
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Today, more than 500,000 self-directed investors use M1’s suite of money management products – M1 Invest, M1 Borrow, and M1 Spend – to build long-term wealth, meet medium-term financial needs, and manage short-term spending.
Pointing to a marketing budget that has been a small fraction of its competitors, M1 Finance CEO Brian Barnes attributes its rapid growth to strong word of mouth among its loyal user base.
“Our record number of account signups and net inflows on M1 is evidence that our platform is solving financial challenges for people, so much so they want to talk about it with their families and friends,” said Barnes. “Investors are tired of the work required to manage their money across many apps and banking providers, and they are desperate for an app that combines investing, borrowing, and banking in one.”
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