SoftBank-backed DriveWealth raises $450 million at nearly $3 billion valuation
(Reuters) - SoftBank-backed DriveWealth has raised $450 million in fresh capital as part of a late-stage financing round co-led by private equity and venture capital firm Insight Partners and Accel, valuing the fintech firm at $2.85 billion.
The Series D funding round also includes investments from Greyhound Capital, SoftBank Vision Fund, and billionaire investor Steve Cohen's Point72 Ventures, DriveWealth said on Friday.
Founded in 2012, DriveWealth offers technology that allows companies to offer fractional trading services. So-called fractional shares are offered by many brokerages, letting investors buy a slice of a share instead of the whole thing.
The trading frenzy centered on GameStop Corp and other "meme" stocks is sparking a wave of investor interest in start-ups aiming to mimic the success of Robinhood Markets Inc, whose no-fee brokerage app has helped drive a trading boom.
Investors also see opportunity in the infrastructure behind the trading apps, powered by companies such as DriveWealth.
"We are in the early innings of a worldwide retail investing revolution," said Bob Cortright, founder and Chief Executive Officer of DriveWealth.
DriveWealth's latest funding round also included a follow-on investment from Fidelity International and several new investors including Base 10, FTX, and FlightDeck.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Subhranshu Sahu)
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