It’s just humpback day, and while the west breeds in extreme heat and drought, there is no shortage of venture capital. So far this week, three wealth management technology firms have announced large rounds of funding, all based in the Silicon Valley / San Francisco region.
On Wednesday, Guideline, provider of retirement plans for small and medium-sized businesses, announced a massive $ 200 million Series E funding round. This round was led by General Atlantic, but existing investors including Generation Investment Management, Greyhound Capital, Felicis Ventures and Propel Ventures also participated. This follows a Series D increase of $ 85 million in July 2020. The company now manages $ 4.8 billion in retirement assets of more than 21,000 small and medium-sized businesses, according to an announcement.
On Tuesday, Addepar announced that it has raised another $ 150 million Series F funding from D1 Capital Partners, representing a pre-financing valuation of $ 2 billion. The wealth management technology provider and illiquid alternative aggregator had just announced its $ 117 million Series E increase in November. It also announced that it has $ 2.7 trillion in client assets on its platform (it hit $ 2 trillion in August).
It was also revealed on Wednesday that cryptocurrency index fund manager Bitwise Asset Management raised a Series B round of $ 70 million, bringing the grand total to over $ 500 million. This final round was led by Elad Gil and Electric Capital, as well as many past and current Silicon Valley executives, including former Wealthfront CEO Adam Nash, as well as many other individual investors including Bridgewater CEO David McCormick and the former Federal Reserve Governor Kevin Warsch.
In the case of Guideline, the financing will flow into the expansion of the employee and office space. The company plans to increase its workforce by a third by the end of the year and is opening a new office in San Diego (it already has offices in San Mateo, Calif .; Austin, Texas; and Portland, Maine).
With the latest round, Addepar will continue to expand both its team and its platform. Prateek Bhide, director at D1 Capital Partners, indicated that Addepar had an “opportunity” to meet international demand for wealth management technology, referring to the “$ 225 trillion in investable assets” available worldwide.
Bitwise indicated in its own announcement that it would use the proceeds from its recent funding to “strengthen its balance sheet and accelerate the national expansion of its organization, team and suite of products.” The company said it now works with more than 200 consulting firms and had exceeded $ 1.2 billion in assets under management on its platform by the end of the first quarter.