Titan raises $58M:
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Titan has raised $ 58 million to create an investment management platform to take on Fidelity and other traditional investment funds.
The company aims to provide everyday investors with access to investment experts, including focusing on investing in the cryptocurrency, Titan Crypto.
Andreessen Horowitz (A16z) led the round with participation from existing investors including General Catalyst, BoxGroup and Ashton Kutcher’s Sound Ventures.
Titan said what Fidelity and its iconic mutual funds are to baby boomers, Titan is to a new generation of investors, the company said.
Other investors included professional athletes and celebrities including Odell Beckham Jr., Kevin Durant, Jared Leto and Will Smith. Anish Acharya, a general partner of A16z, will join Titan’s board of directors.
To date, New York-based Titan has raised $ 75 million to support the mission of leading the world to better wealth by enabling everyone to invest in global success. The funds will be used to develop Titan’s underlying platform and suite of investment products, alongside scaling core functional teams.
Titan is the first, mobile-first direct-to-consumer (DTC) platform where everyday investors, regardless of their wealth, can have their capital actively managed by experts in strategy investing. long-term. Like the investment giants before him, the initial strategies on Titan’s platform are primarily stocks (for example, its large-cap growth strategy called “Flagship” is a modern take on the revered Magellan Fund). But the platform is rapidly expanding to other asset classes, entering new territory where historical players have not yet trodden.
Joe Percoco, CEO of Titan, said in an email to VentureBeat that traditional investment management tools are like the technological equivalents of VHS video tapes.
“After years on Wall Street helping the rich get richer, we’ve been hampered by the divide between institutional and retail investors,” Percoco said. “We were telling our own family and friends to invest in the ‘bland menu’ of exchange traded funds (ETFs) and mutual funds because they couldn’t afford a manager. of heritage. Meanwhile, accredited investors had a secret menu of hedge funds, venture capitalists, etc. This division frustrated us, so we built Titan.
Titan has grown 500% over the past 12 months, much of it organically, as everyday investors have turned to the platform in search of active investment management without having to do it themselves. same. Titan expects to cross its first billion dollars in assets under management later this year,
just over three years after launch.
Acharya said Titan is reinventing investing for Millennials and Gen Z, and adds transparency and the ability to learn. Of course, others are ahead in some ways. Robinhood is about to raise $ 35 billion in an initial public offering. While Robinhood encourages self-investing, Titan focuses on managing capital internally on behalf of clients while guiding them through the stages of investing as they go.
Titan’s cryptocurrency investment goal will be launched soon. And it will be the first and only actively managed portfolio of cryptocurrency assets (readily) available to U.S. investors, the company said. The strategy seeks to invest in a concentrated basket of crypto assets that can outperform over a long-term time horizon.
It is actively managed by Titan’s internal crypto investment team. At launch, Titan Crypto will be available to all US residents except those with a home address in New York. Access for New York residents will be provided once Titan’s custodial partner receives regulatory approval for state jurisdiction.
How Titan Works
Investing through Titan is supposed to be easy. After a quick sign-up, clients choose to place their capital in one or more of Titan’s current investment strategies, including Flagship (large US-based companies), Opportunities (small and medium US-based companies), Offshore (international companies) and Crypto (concentrated basket of crypto assets). Titan’s minimum investment is $ 100, and accredited and non-accredited investors can join. There are no performance-based fees and no lock-ups. Each strategy is rigorously actively managed by Titan’s internal investment team.
Titan clients also own the underlying fractional shares of the companies in each investment strategy, providing greater flexibility over pooled vehicles like hedge funds and mutual funds.
“The mutual fund or an exchange-traded fund (ETF) is basically just a technology that allows an investment manager to accept money from someone in order to invest in securities like a basket. shares, ”said Percoco. “We think this technology is like a VHS tape. It gets the job done, but it’s archaic for several reasons.
The investment manager cannot speak to the client. A mutual fund is a black box. It’s bad for many reasons, he said. In addition, the investment manager has no idea who the client is. When you buy an ETF, you are just an anonymized dollar value, Percoco said.
And these products have cost layers, have high minimums, and are difficult to create, he said. The factory that creates the mutual fund itself is very old.
“Believe it or not, the entire investment management industry (ie the use case of someone giving their money to an investment expert) relies on these VHS tapes.” , said Percoco. “These are the archaic technologies used. We are completely rebuilding it. Fidelity is an old factory. Titan is indeed a new factory.
With Titan, investment managers can talk to clients (see the in-app video messages they send to explain market situations). Clients are not anonymous and therefore Titan can personalize investment recommendations for them. And Titan’s products can be created faster, better and cheaper, ”he said.
Like the investment giants before him, the initial strategies on Titan’s platform are mostly stocks (for example, his large-cap growth strategy called ‘Flagship’ aims to be a modern take on the revered Magellan Fund )”, did he declare. “We are already receiving requests from multi-billion dollar managers asking to launch products on Titan. ”
Titan was founded by Clayton Gardner, Maxwell Bernardy and Percoco. The company has 30 employees and hopes to have 100 per year.
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