Reported by Jonathan Ponciano and Hank Tucker.
Looming interest rate hikes, Russia’s war on Investing Ukraine and spiking inflation have wreaked havoc on the stock market this year, but these four
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have picked up millions of customers and billions of dollars in assets despite the turmoil.
The explosive popularity of alternative investments has fueled staggering growth for New York City-based iCapital, which returns to Forbes‘ Fintech 50 for the fifth-straight year after nabbing $500 million from investors in 2021. The platform helps financial advisors and legacy institutions like UBS and BlackRock diversify their wealthy clients’ portfolios with investments in venture capital, real estate, structured debt and more—and now services more than $125 billion in assets, up 70% in one year. There’s also more to come: Late last month, iCapital said it would expand into the annuities market with the acquisition of fintech platform Simon, which helped issue more than $48 billion in structured investments and annuities last year.
Noticeably absent from this year’s list, Robinhood became ineligible after going public in July at a meteoric $30 billion valuation. Encapsulating the stock market’s wild year, Robinhood shares have plummeted more than 83% as user counts and trading volume plunged from last year’s record highs.Investing Socially conscious neobank Aspiration, which in August said it was going public via a special purpose acquisition company, also drops off, though it has yet to begin trading.
In their place, brokerage Public.com debuts on the Fintech 50 less than three years after its launch in September 2019. With the help of investments from billionaire Shari Redstone, NFL player JJ Watt and influencer Casey Neistat, Public’s user count has roughly tripled to 3 million over the past year. The platform also quickly expanded its offerings beyond just stocks—this year adding support for non-fungible tokens, art, real estate, cryptocurrency and more.
Others reappearing on the Fintech 50 this year are 401(k) administrator Guideline, which crossed more than $6 billion in assets in April, and mobile app Stash, which now offers cryptocurrencies alongside its investing, banking and retirement offerings.
Here are the most innovative investing companies in fintech:
Administers 401(k) plans for small businesses for a base fee of $49 per month plus $8 per participating employee. Partners with payroll service providers including Square, Intuit, Gusto and ADP. New state laws like one in California requiring businesses with five or more employees to offer a retirement savings plan by June 30 are helping drive growth. In April, began offering SEP IRAs for the self-employed, too.
Headquarters: Austin, Texas
Funding: $344 million from General Atlantic, Generation Investment Management, Greyhound Capital and others
Latest valuation: $1.15 billion
Bona fides: Administers more than 30,000 small business 401(k)s, up 50% over last year.
Cofounders: CEO Kevin Busque, 43, previously cofounded freelance labor marketplace TaskRabbit; CTO Mike Nelson, 34; chief product officer Jeremy Caballero, 39.
Connects more than 10,000 financial advisors and their hundreds of thousands of high-net-worth clients to private equity, private debt, venture capital, real estate and hedge funds with as little as $25,000 invested per fund—much lower than traditional minimums for these funds, that can run from $1 million up to $10 million. Now providing its “white label” service to more than 140 firms, including Blackstone, The Carlyle Group, Brookfield, UBS, Deutsche Bank and Goldman Sachs.
Headquarters: New York City
Funding: $765 million from BlackRock, WestCap, Temasek and others
Latest valuation: $6 billion
Bona fides: Assets invested through the platform have swelled to some $125 billion, up about 70% in one year thanks in part to expansions across Europe and Asia.
Cofounders: CEO Lawrence Calcano, 59, a 17-year veteran of Goldman Sachs; managing partners Dan Vene, 46, and Nick Veronis, 57.