Titan Raises $58M Series B Led by a16z

Titan Secures $58 Million in Series B Funding

Titan, a startup focused on providing investment management services to a new wave of investors, has successfully completed a $58 million Series B funding round. This financing was spearheaded by Andreessen Horowitz (a16z).

This latest investment follows a $12.5 million Series A round secured just over five months prior, led by General Catalyst. To date, the company has raised a total of $75 million since its founding in 2017.

Investor Details

General Catalyst also participated in the Series B round. Additional investors include BoxGroup, Sound Ventures (owned by Ashton Kutcher), and a diverse group of prominent individuals.

This group of high-profile investors features professional athletes and celebrities such as Odell Beckham Jr., Kevin Durant, Jared Leto, and Will Smith.

Describing itself as a “new-guard active investment manager,” Titan launched its initial investment strategy in February 2018.

Currently, the platform serves 30,000 users. The company has experienced a substantial 500% growth in the past year, primarily through organic means.

Titan anticipates surpassing $1 billion in assets under management later in the current year. Previously, co-founder and co-CEO Joe Percoco indicated the company was nearing $500 million in assets under management and had achieved cash flow positivity in the prior year.

Reimagining Investment for a New Generation

“Titan represents what Fidelity and its mutual funds were to baby boomers – a modern investment solution for emerging generations,” stated Percoco.

He emphasized that Titan is the first direct-to-consumer, mobile-first platform enabling everyday investors, regardless of their wealth, to benefit from actively managed capital by investment professionals employing long-term strategies.

Percoco characterized traditional mutual funds and ETFs as “technology” facilitating investment manager access to investor capital. He compared this technology to outdated formats like VHS tapes.

He explained that these older systems treat investors as anonymous dollar amounts and are burdened by layered costs, high minimums, and creation difficulties.

“The infrastructure supporting mutual funds is antiquated. The entire investment management sector relies on these legacy technologies,” Percoco asserted. “We are completely rebuilding this system. Fidelity embodies an older model, while Titan is a new, innovative factory.”

Expanding into Cryptocurrency

On August 3rd, Titan is scheduled to introduce its cryptocurrency offering. The company asserts this will be the first actively managed portfolio of cryptocurrency assets available to investors in the U.S.

Initially, Titan Crypto will be accessible to all U.S. residents, excluding those residing in New York. Access for New York residents will be granted once Titan’s custodial partner obtains the necessary regulatory approvals for the state.

Future Plans

Titan intends to broaden its platform by enabling other investment managers to launch their products through its infrastructure.

“Currently, the strategies available on Titan primarily focus on stocks,” Percoco noted. “We are already receiving inquiries from multibillion-dollar managers interested in launching products on our platform.”

The newly acquired capital will be allocated to further developing the platform, expanding its suite of investment products, and increasing its workforce.

The company has grown from seven employees a year ago to approximately 30 currently, with plans to reach 100 employees within the next year.

A16z’s Perspective

Anish Acharya, a general partner at a16z, expressed his firm’s consistent admiration for Titan’s product vision, execution, and team since their initial meeting last year.

Acharya highlighted the evolving trends in consumer investing, noting younger generations’ increased risk tolerance, demand for user-friendly mobile interfaces, and desire for transparency from financial institutions.

He also emphasized the importance of understanding how their money is invested and participating in the learning process.

As part of the financing, Acharya will join Titan’s board of directors.

He believes Titan occupies a unique position between passive robo-advisors and active stock-picking, “allowing customers to benefit from the expertise of top fund managers and gain investment knowledge without the burden of making individual decisions.”