TIFIN has raised $109m at a unicorn-like valuation to provide ‘the world’s largest single data platform for wealth and investments’ – would deliver ‘integrated’ products through super apps in micro- capsules

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The Colorado company just sold 14% of its conglomerate at a stunning valuation to keep pace with rising cash burn and the appetite to buy, buy, buy…

TIFIN has just completed a very hot 2021-style capital raise in a very cold capital market in 2022 because it owns the products of 2025 – a way for traditional asset managers to sell products as data embedded in the “great applications” to come.

Embedded data generated about $20 billion in revenue in 2020, but is expected to reach $844 billion in revenue by 2026, according to Envestnet.

Jenny Johnson: “As a strategic investor, we are delighted to partner with TIFIN. »

TINFIN raised $109m in a Series D round at a valuation of $842m, nearly double the $447m private equity commanded a year ago and 300% more than the value of $184 million granted 18 months ago.

TIFIN also announced that it has entered into a resource sharing agreement with InvestCloud, a software design and engineering company based in Los Angeles.

Rob Heyvaert, founder and managing partner of InvestCloud owner Motive Partners, has been added to TIFIN’s board.

Assessing how TIFIN, founded in 2918, dazzles funders and strategic partners is no easy task.

Digital broadcast

Jenny Johnson, President and CEO of Franklin Templeton, participating in this round of financing, expressed her views in May 12 release. She called TIFIN’s approach the future of product delivery.

Larry Shombres
Larry Shombres: “It’s hard for you to understand.”

“Wealth technology and personalized advice are rapidly reshaping the way financial solutions are delivered.

“As a strategic investor, we are delighted to partner with TIFIN to develop cutting-edge digital solutions powered by a wide range of investment strategies, sophisticated algorithms and scalable technologies,” she said. .

TIFIN has already engaged 30 investment managers to help them with virtual storage space to distribute more than 60 investment funds on its platform with this data-host-product approach, Nair adds in the letter.

“This allows TIFIN to play a vital role in helping the investment management industry transition to digital distribution of their investment products and solutions.”

Integrated financing

RIABiz queries sent to several of the industry’s top analysts resulted in a series of virtual shrugs. The company closely monitors its business — and its futuristic pointy-head stuff, they said.

“It’s hard for you to understand, because it’s completely different from what we do today,” says Larry Shumbres, who was CEO of Totum Risk when TIFIN acquired it. “When I talk to Vinay [Nair, CEO of TIFIN]. I was talking about current trends and he was looking away.”

Yet it’s no secret that it simmers APIs, AI, data and investment products into an “integrated finance” stew whose deliverable is so promising it can encourage a greater risk tolerance.

Envestnet-Yodlee is another company with big data designs. Its former CEO, Anil Arora, is now chairman of wealth at TIFIN. See: Anil Arora resigns from Envestnet board on same day his new venture gets stunning valuation

Integrated finance was the hot topic at Envestnet’s recent national conference in Charlotte, NC on May 11-12.

Dani Fava explained it well to ThinkAdvisor; she said her company was about to unveil its own integrated finance offerings.

The offer responds in part to the fact that the average consumer has 80 apps and these will necessarily be consolidated, she said.

“We are about to enter the era of the super app. We’re going to see apps where we can literally do everything, including all of our financial services decisions in one place. »

For Envestnet’s services and products to be sold as intel-inside supermarket applications, they will need to take the form of embeddable data. See: After buying Totum and selling 55ip, TIFIN boosts capital – and brand credibility – with three new high-profile investors

Model portfolios

Rob Heyvaert
Rob Heyvaert: “We can be the biggest data platform.”

TIFIN has taken over the jargon of integration.

It’s “an approach we call ‘integrated investments’ – where investment management products are housed within the software and APIs used by financial advisors and other trusted intermediaries,” writes Dr Vinay Nair, Founder and CEO of TIFIN in a letter of January 3.

For now, TIFIN’s revenue is largely based on promotion-pay deals with companies like Franklin Templeton, which is trying to get more distribution from its mutual funds and ETFs.

“The majority of revenue comes from asset managers sponsoring funds on the software that allows them to build awareness and draw attention to their products,” he writes.

“The focus is now on expanding from fund-only sponsorships to model portfolio sponsorships and the ability to execute trading of investment proposals generated directly through TIFIN.”

It’s like how supermarkets place certain items near store cashiers, except now it’s done in the world of apps and websites, she explained, as reported by ThinkAdvisor.

grand prize

Heyvaert, the newest board member, made news last year when he bought InvestCloud on behalf of Motive. He says he brings more than money to this investment. See: InvestCloud – long labeled an ‘Envestnet killer’ – sold at $1bn valuation level, gets added to Tegra118, but some say, not so fast

Anil Arora
Former Yodlee CEO Anil Arora is now TIFIN’s Wealth Chairman.

“Our team of investors, operators and innovators look forward to partnering with Vinay and the talented team at TIFIN to deliver the next generation of fintech infrastructure,” Heyvaert said in the release.

Nair returned the compliment in the statement. “We look forward to working with them and learning from their globally recognized expertise and connectivity in our space,” he said.

All that negotiation, financial engineering, and artificial intelligence engineering leads to a very big prize, Nair said in a interview with TechCrunch after the news published.

“We believe we can be the biggest data platform for the wealth and investment world,” he said.

Fleeting opportunity

TIFIN, owner of Totum Risk, now has 300 employees, compared to 150 in October. Its products flow through a network of around 3,000 financial advisors, Nair added in the interview. See: Tifin Group buys Totum Risk with new ideas on how to take on Aaron Klein’s Riskalyze

Still, the urgency to grow and grow now is real, Nair told TechCrunch. Bear markets can represent a fleeting opportunity to break investor inertia and invest digitally.

“We think that will help us because in some ways digital distribution is getting more funding compared to traditional distribution in these times because it’s more productive.

“If you look, people spent more on Amazon, not less, during the dot-com crisis. So in some ways, we think this would be the first time asset management would see this change,” he said. said Nair.

New Acquisitions

TIFIN also has a consumer strategy which it reinforced with acquisitions on May 3 of All star mapsInc. and INO.comInc. The two are also part of an effort to get big and dominate, Ian Rosen, managing director of Financial Answers at TIFIN said in the statement.

“We are developing the largest pool of first-party retail investor information available, and our superior understanding of this community will enable us to help investors, advisors and asset managers achieve better results.”

It’s unclear whether the approach will succeed, but it’s no mystery why it’s attracting big backers.

“If you have the technology and you’re moving in the right direction of future trends, there’s a lot of money there,” says Shumbres.

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