Stacked Raises $35M for Retail Crypto Investing Tools

Stacked Secures $35 Million in Series A Funding

Stacked, a platform offering automated investment solutions for cryptocurrency, has announced the successful completion of a $35 million Series A funding round. The investment was co-led by Alameda Research, the trading firm associated with FTX founder Sam Bankman-Fried.

Round Details and Participants

Alongside Alameda, Bybit and Mirana Ventures, a partner of BitDAO, also co-led the funding round. Additional investors included Fidelity International Strategic Ventures, DRW Venture Capital, Alumni Ventures, and Jump Capital.

Company Growth and Funding History

Founded in April 2020 and based in Chicago, Stacked initially raised $1 million in seed funding in September 2020. This latest investment brings the company’s total funding to nearly $40 million, as stated by co-founder and CEO Joel Birch.

Future Plans for Expansion

The newly acquired funds will be allocated towards expanding the company’s workforce. Stacked intends to double its current team of 40 employees within the next six to eight months.

Investment will also be directed towards user acquisition, growth initiatives, and marketing efforts. Notably, the company has achieved its current growth without any formal marketing expenditure.

Platform Performance and Regulatory Compliance

In 2021, Stacked facilitated over $10 billion in automated transactions for a substantial number of new investors. The company also recently obtained registration as a Registered Investment Advisor (RIA) with the U.S. Securities and Exchange Commission (SEC).

This RIA status prepares Stacked to broaden its range of product offerings.

Evolving Product Strategy

Birch explained that Stacked will evolve beyond automating investment strategies. The platform will introduce structured products, such as risk-adjusted portfolios, and offer personalized investment advice tailored to individual risk tolerances.

Differentiating from Existing Crypto Products

While crypto ETFs are still awaiting approval for trading in the U.S., products like Grayscale trusts have gained popularity. Stacked’s approach differs by providing access to all retail investors, regardless of accreditation status.

Furthermore, Stacked allows users to maintain custody of their digital assets.

How Stacked Operates

Stacked functions as an overlay to existing crypto brokerage accounts. It provides pre-built portfolios, termed “stacks,” based on a risk assessment determined through a suitability evaluation.

The platform collaborates with leading cryptocurrency exchanges, including Coinbase, FTX, and Binance.

Core Features and Revenue Model

Currently, the core Stacked product is available at no cost. It enables users to manage portfolios across multiple exchanges, automatically rebalance holdings, and compound returns.

Users can also lend cryptocurrency through the FTX exchange.

Stacked generates revenue through a percentage-based fee on transactions within its two-sided open marketplace. This marketplace facilitates the buying and selling of automated trading strategies developed by prominent traders and influencers.

Upcoming Feature: Stack Customization

Within the coming weeks, Stacked plans to launch a feature allowing users to duplicate existing “stacks” as templates and customize them with direct edits.

Exchange Partnerships and Ecosystem Growth

Exchanges are showing interest in supporting Stacked because its users demonstrate increased activity and engagement on their platforms.

Birch believes exchanges will increasingly serve as the foundational infrastructure for the crypto ecosystem.

The Future of Crypto Infrastructure

“They have great custody solutions, liquidity, security, all these very complicated things. But the user experience is usually pretty simple, and it’s a fairly technical product, so I think you’ll see tons of products continue to get built on top of the infrastructures that exchanges build.”

Founder’s Background and Journey

Joel Birch first encountered Bitcoin in 2015 while working at Grubhub, where he led restaurant growth for nearly five years. His entrepreneurial journey began at age 17 with a drop-shipping venture.

Birch, who describes himself as a “tech nerd,” pursued his passion for internet business after multiple attempts at college.

Early Career and Startup Involvement

Inspired by the burgeoning startup scene in Silicon Valley during 2012-2013, Birch sought opportunities in the tech industry.

He secured a position at Grubhub, which then had only 13 employees, and benefited from mentorship from engineers, data scientists, and business professionals.

After discovering Bitcoin, he began exploring business ideas in the crypto space and connected with Stacked co-founder Stephen Beavis, marking the beginning of Stacked’s development.