Wealth-Management Tech Experiences Surge In Investments


Wealth-management tech has recovered from a slump in investment earlier in the year.

Wealth-management tech is experiencing a surge in investment.

Earlier this year, wealth-management tech was not attracting investors’ funds in the same way. However, in the third quarter there has been renewed interest in these companies.

Between the second and third quarter, investment in wealth-management tech has nearly doubled. There was an increase of investment from $422.7 million to $761 million. This total amount accounted for 38 different deals and 39 transactions.

Wealth-tech is a category that includes different platforms aimed at helping individuals manage their wealth and their investment decisions. These types of platforms have democratized wealth management and investment, allowing for the preferences of younger consumers to hold higher relevance.

"You're starting to see these things emerge on a global scale," said Lindsay Davis, a senior analyst at CB Insights.

For example, Robinhood, a stock-trading app, raised $323 million in its latest funding round in July. The round was led by DST Global among other investors. This surge in investment led to an increased valuation of $7.6 billion for the company. This valuation was determined by the company itself.

Younger consumers are involving themselves in stock-trading and investment and are expressing a preference for low- or no-commission accounts.

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Economics, Finance and Investing