SmartAsset Becomes a Unicorn: Revolutionizing Financial Advisory

SmartAsset Secures $110 Million in Series D Funding

SmartAsset, a platform facilitating connections between consumers and financial advisors, has announced the successful completion of a $110 million Series D funding round.

This financing has resulted in a valuation exceeding $1 billion for the New York-based company. According to Crunchbase data, the total capital raised since its 2012 founding now surpasses $161 million.

Investment Details

TTV Capital spearheaded SmartAsset’s Series D round. Additional investors included Javelin Venture Partners, Contour Venture Partners, Citi Ventures, New York Life Ventures, North Bridge Venture Partners, and CMFG Ventures.

The company’s previous funding round, a $28 million Series C led by Focus Financial Partners, occurred in June 2018. Since then, revenue has reportedly increased tenfold, positioning SmartAsset near a $100 million ARR (annual recurring revenue) milestone. The platform recently facilitated its one millionth consumer-advisor pairing via SmartAdvisor.

In 2020 alone, SmartAsset facilitated $10 billion in new, finalized assets under management (AUM) for financial advisors and firms throughout the United States.

Expanding Reach and Services

Beyond its advisor-matching capabilities, powered by Automated Financial Modeling software, SmartAsset reaches over 100 million individuals monthly. This is achieved through its extensive personal finance content, tools, and “personalized” calculators.

Prior to establishing SmartAsset, founder Michael Carvin gained experience within the finance industry. He shared in a Y Combinator interview – a firm that also invested – that his difficulties in finding reliable and impartial information regarding home purchases and mortgages motivated him to collaborate with Philip Camilleri to create SmartAsset.

He noted that existing calculators often contained inaccuracies, and much of the available content appeared designed to encourage larger loan amounts. Consequently, they launched SmartAsset to empower individuals with the resources and information needed to make informed decisions concerning retirement, taxes, savings, homeownership, and insurance.

Future Plans

The newly acquired capital will be allocated to the development of new product offerings, enhancements to its technology infrastructure, and the forging of new data partnerships.

SmartAsset also intends to expand its current team of 202 employees by more than 75% throughout the current year.

TTV Capital Partner Mark Johnson stated that the company “is rapidly solidifying its position as a leader in a substantial U.S. market by providing an invaluable resource for both consumers and financial advisors.”

A Milestone for Black Founders

This funding round and the resulting valuation carry significance, even within the context of the growing unicorn company landscape.

With this announcement, SmartAsset co-founder Michael Carvin becomes the third Black founder and CEO to lead a company valued at over $1 billion. The others are Robert Reffkin, CEO and founder of Compass, and Tope Awotona, CEO and founder of Calendly.

However, the limited number of Black-led unicorns highlights the historical underinvestment in Black and African-American startup founders. Crunchbase estimates that only 1% of total venture capital funding, equating to $1 billion, was directed towards this group of founders in 2020.

Addressing Funding Disparities

“My hope is that witnessing the success of more Black founders will inspire a greater number of people of color to launch their own companies, to the point where this is no longer considered newsworthy,” Carvin shared with TechCrunch.

Several Black-led venture capital firms have recently finalized investments, potentially shifting this trend. These include Collab Capital’s $50 million investment vehicle, Harlem Capital’s $134 million seed fund, Cleo Capital’s $20 million target for Fund II, and MaC VC’s $103 million inaugural fund.

Furthermore, HBCUvc and Google for Startups have both announced initiatives this month aimed at providing non-dilutive capital to early-stage, underrepresented founders.

Having secured Series D funding, SmartAsset is dedicated to mitigating bias within the realm of personal finance – while simultaneously serving as an example of how frequently overlooked founders can build thriving businesses despite facing systemic challenges.