Titan secures $58M to democratize active strategies for young retail investors

The news: The US-based retail investing platform has closed a $58 million Series B at a valuation of $450 million, led by Andreessen Horowitz and a host of celebrities, like Will Smith, per Business Wire. It will use the funding to broaden its suite of investment products.

Here’s how it works: The investment fintech aims to democratize retail investors’ access to actively managed investment strategies.

Titan’s core market is millennials, and it gives these investors direct access to its range of stock options, including large US companies, small and medium businesses, and international companies. The minimum investment stands at $100. Clients pay 1% in management fees and no performance-related fees.

In the three years since its launch, Titan has amassed around $500 million in assets under management (AUM) and has recorded 500% growth in the last year.

What’s its growth outlook? Despite operating in a saturated market, Titan’s well-differentiated offering and solutions tailored to a younger age bracket will help its rapid growth continue—it has forecast that it will reach its ambitious milestone of $1 billion in AUM by year-end.

• Titan’s actively managed portfolios distinguish its value proposition from fintech competitors. US digital trading platforms (such as Robinhood) and robo-advisors (like Wealthfront) both have grown rapidly in the past year, fueled by interest from younger consumers. While these firms’ success creates a competitive market, Titan’s offering stands out because it offers active strategies, which aren’t usually available to retail investors. This sets it apart from both the “do-it-yourself” offerings of trading platforms and the passive investment products of robo-advisors.
• Titan’s offering is well-aligned with the demands of younger generations. Younger investors have shown that they prefer a hybrid advisory approach with a host of digital tools to augment their interactions with investment firms. To meet these needs, Titan’s mobile-first offering blends video updates explaining investment decisions with a dedicated investor relations team. Titan has also opened a waitlist for its new crypto portfolio. This will likely win over more clients within its targeted demographic, given the younger generations’ fascination with crypto trading—as demonstrated by the success of Robinhood’s crypto trading offering, for just one example.