M1 Finance raises another rapid-fire round after scaling its AUM to more than $3.5B

Months after raising a Series C worth $45 million, Chicago-based M1 Finance announced a new round of capital today. A Series D, the new $75 million investment was led by Coatue, with two prior investors — Left Lane Capital and Clocktower Technology Ventures — also taking part.

The new financing comes after M1 raised twice in 2020, including the previously mentioned Series C and a smaller $33 million Series B.

While rapid-fire fundraising has become increasingly common in recent years, M1 Finance’s recent capital accretion remains notable for its pace and scale. And as the company has been comparatively free with both growth metrics and notes about its long-term business model, TechCrunch has been able to keep tabs on its expansion over the past few quarters.

M1 Finance’s growth

In February of 2020, M1 announced it had reached the $1 billion assets-under-management (AUM) mark after starting the year at $800 million. At the time, the company’s CEO Brian Barnes told TechCrunch that his company was targeting to generate revenues of around 1% of consumer AUM. That provided a good toe-hold into tracking how quickly the startup was scaling its revenues as it grew its asset base.

In June of 2020, the company announced its Series B and a new AUM milestone: $1.45 billion. That was something akin to 50% growth in les than half a year. Not bad.

When M1 Finance raised its Series C later that year, it had scaled to $2 billion in AUM. That was (Read more...)