Just months after it announced a $33 million Series B, Chicago-based M1 Finance today disclosed a $45 Series C.
The new financing event was led by Left Lane Capital, the same investor that led M1’s Series B. Bear in mind that so-called inside rounds are now a bullish sign in 2020, as opposed to in prior VC eras when they were viewed more cooly. Other M1 investors include Jump Capital, Clocktower Technology Ventures and Chicago Ventures, though only the first two appear to have taken part in this round.
Per M1, the Series C comes just 120 days after it raised a Series B. A good question is why M1 has raised more capital, and why Left Lane Capital wanted to lead two rounds for the consumer-focused fintech provider. Going back to our prior coverage, we can figure it out.
Chicago’s M1 Finance, a consumer-focused fintech platform, reaches $1B under management
In February, we reported that M1 Finance had reached the $1 billion assets under management mark, or AUM.
The startup combines three different traditional fintech services into one (roboadvising, neobanking and lending), allowing it to price the package aggressively. The model appears to be working. When M1 raised its Series B a few months later in June, it had reached the $1.45 billion AUM, or about 45% growth in just over a quarter. That’s very good.
Today, the company announced that it has surpassed the $2 billion AUM mark, up more than 38% in the last four months.
M1 posted slower AUM growth in percentage terms and greater growth in raw AUM over a similar time frame heading into its Series C. But regardless of that nuance, the company’s AUM grew quickly.
M1 Finance raises $33M Series B as it reaches $1.45B AUM
That fact helps explain its new