YieldStreet Closes $62M Series B Equity Round to Reimagine Investing
NEW YORK--(BUSINESS WIRE)--Feb 26, 2019--YieldStreet, the digital wealth management platform that offers access to alternative investments traditionally only available to institutions, announced today that it has closed $62M of Series B equity financing. The round was led by Edison Partners, with participation from Greenspring Associates, and existing investors Raine Ventures and a large multi-billion dollar NY family office.
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The company will leverage its Series B capital to expand its product offerings and audience to a broader set of retail investors, scale origination, recruit top-tier talent, and pursue strategic acquisitions.
“True wealth creation opportunities have been either too expensive or off limits for most investors. YieldStreet is going after this market in a way the best innovators do. They are building a multi-product platform that brings a new level of investing inclusion to those looking to build wealth and save for their future,” said Chris Sugden, Managing Partner, Edison Partners, who will join YieldStreet’s board. “The impressive and highly capital efficient revenue growth, paired with a proven product-market fit and strong founding team compelled us to become a part of expanding this movement.”
Over the past three years, YieldStreet has taken an investor-first approach, growing a community of over 100,000 that have invested more than $600M on the platform. YieldStreet’s success has resulted in more than $50M of interest generated for its highly engaged customer base. Most offerings released on the platform are fully subscribed in a matter of seconds.
“We are energized every day to provide access to investment products that put our customers on a path towards financial security and independence. This fundraising round validates our vision of defining a new market as a leader in this category and will allow us to make a huge impact for millions of consumers,” says founder and CEO Milind Mehere.
YieldStreet customers can participate in a wide range of alternative investments across multiple asset classes including real estate, marine & shipping, legal finance, and commercial loans. Since inception, YieldStreet has generated an expected 12% IRR. Additionally, YieldStreet recently introduced an FDIC-insured savings account, The YieldStreet Wallet held at a federally chartered bank, inviting accredited and retail investors to earn 2.2% annually on idle cash with no fees or minimums.
“Our platform is designed to unlock a multi-trillion dollar private credit market in a new way. We’re building the most efficient global distribution model, creating new synergy between investors and originators to access capital and generate yield that never existed before. We believe this will result in a foundational paradigm shift we haven’t seen before in investing,” said Michael Weisz, founder and President of YieldStreet.
To learn more about the team at YieldStreet, watch a video shot at its corporate headquarters to celebrate its community of investors.
YieldStreet is building the largest global digital wealth management platform to change the way wealth is created. With an investor-first approach, YieldStreet’s community can build a diversified portfolio of investments outside of the stock market and generate passive income. Investors get unprecedented access to asset classes such as Real Estate, Marine Finance, Legal Finance & Commercial loans. Headquartered in New York City with offices in Brazil, Argentina and Greece, the company is backed with $178M in equity and debt capital from firms including Edison Partners, Greycroft, & Raine Ventures. Join the movement at www.yieldstreet.com.
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Liang Zhao, 505-720-6933
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PUB: 02/26/2019 08:41 AM/DISC: 02/26/2019 08:41 AM