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Wealthtech Funding Heats Up With 2 Big Rounds

Fintech’s Facet and Quartr raised a collective $41 million, highlighting robust enthusiasm for the industry.

Photo of the Quartr and Facet websites
Photo via Connor Lin / The Daily Upside

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The funding train just keeps right on rolling.

Two wealthtech companies closed on significant deals this week, highlighting a robust demand for technology-based financial planning and investment tools. Digital financial planning firm Facet raised $35 million, led by private equity firm Multiplier Capital: The funds will go toward tech development and expanding its services. The Baltimore-based investment advisor connects clients with affordable financial planners through a membership system.

Quartr, a Stockholm-based research and data platform used by both institutional and retail investors, secured a $6 million investment from Altos Ventures. The company provides clients access to first-party data from more than 10,000 public companies. Altos will also join Quartr’s board.

It’s all part of a broader trend in the wealthtech sector, which is projected to top $9.43 billion by 2028. Wealth management “suffers from legacy technology and business models that are ripe for disruption,” Facet CEO Anders Jones told The Daily Upside. “It’s no surprise that so much money is pouring into the sector.”

Funding the Future 

Every industry is trying to leverage new technology, and for wealth managers, that innovation comes in the way of up-to-date market analytic tools and artificial intelligence-powered programs, like those used to quickly summarize documents. 

According to a recent survey from Mercer, some 91% of managers are currently using or planning to use AI within their investment strategy or asset-class research. So far this year, we’ve seen plenty of big-ticket investments going toward exactly those kinds of tools:

  • Online estate-planning platform wealth.com raised $30 million led by Google Ventures, and aims to double its staff of 50. 
  • Powder, which offers AI tools for organizing brokerage documents, secured $5 million from various Silicon Valley investors.

“It’s clear that the world is moving toward more transparent service and higher-quality advice that aligns the advisor with the consumer,” Jones said.

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