Forbes Fintech 50 2018: The Future Of Investing

In a world saturated with trading apps and robo-advisors, these eight investing and wealth management companies have something that sets them apart, from Robinhood’s new crypto trading option to CircleUp’s new $125 million venture fund. Here are our Forbes Fintech 50 2018 picks in the world of investing, trading and wealth management.

Acorns, Irvine, CA

Mobile app rounds up each debit or credit card purchase to nearest dollar, investing extra pennies in diversified portfolios of low cost index ETFs. Through “Found Money” program, some brands also kick in a percentage of purchases to a buyer’s Acorns accounts—1% from Walmart, 1.2% from Apple, 4% from Boxed and Expedia. After recent acquisition of Portland startup Vault, Acorn plans to roll out IRA option early this year.

Bona fides: Now has 2.9 million investment accounts, with 2.4 million active users.

Cofounders: Father and son Walter and Jeff Cruttenden, ages 67 and 31.

Current CEO: Noah Kerner, 40

Funding: $101 million from PayPal, Greycroft, e.ventures, Bain Capital Ventures and others

Threat to: Other savings apps and robo-advisors.

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Betterment, New York City

Robo-advisor manages ETF portfolios geared to investors’ goals and risk tolerance for 0.25% of assets a year. New 0.40% premium service, available to those with $100,000 or more invested, offers access to human advisors via phone, email and text. Now offers a socially responsible investing portfolio.

Bona fides: Largest independent robo, managing $13 billion plus for 300,000 customers.

Founder & CEO: Jon Stein, 38

Funding: $275 million from Anthemis Group, Bessemer Venture Partners, Citi Ventures, Northwestern Mutual. Latest valuation: $800 million

Threat to: Financial advisors, other robo advisors

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Cadre, New York City

Invitation-only platform allows high net worth individual and institutional investors to buy shares in commercial real estate and multifamily deals at lowers fees than are typical in real estate funds and REITs.

Bona fides: Since inception, has closed more than $1 billion in total deals through its platform.

Founder & CEO: Ryan Williams, 30, a Forbes 30 Under 30. (Trump son-in-law Jared Kushner was a cofounder.)

Funding: $130 million from Andreessen Horowitz, Breyer Capital, Ford Foundation, Goldman Sachs, Thrive Capital and others. Latest estimated valuation: $800 million

Threat to: Real estate investment funds, commercial real estate brokers

Forbes on Cadre: 30 Under 30 Finance: The Top Young Traders, Dealmakers And Big Money Innovators

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CircleUp, San Francisco

Starting with crowdfunding in 2012, CircleUp now connects small consumer product companies to capital in three way. In 2017, it began offering lines of credit at rates of 14% to 25%. A new $125 million venture fund managed by CircleUp invests alongside individual accredited investors.

Bona fides: 255 startups have received $390 million in equity investments through the site.

Founders: CEO Ryan Caldbeck 39, and COO Rory Eakin, 39

Funding: $53 million from Union Square Ventures, Google Ventures, former leaders of Goldman Sachs and Capital One and others.

Threat to: Traditional venture capital

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Ellevest, New York City

Digital investing platform provides financial plans and ETF portfolios that take account of women’s longer lives, different salary curves and the gender pay gap. Digital only accounts cost 0.25% of assets a year. Premium accounts offer access to human advisors for 0.50% assets a year, with a $50,000 minimum.

Bona fides: In first year of operation, signed up more than 6,000 clients.

Co-founder & CEO: Sallie Krawcheck, 53, who held top spots at Merrill Lynch, Smith Barney and Citi Private

Funding: $44.5 million from Morningstar, Rethink Impact, billionaire Penny Pritzker, Venus Williams, Mastercard CEO Ajay Banga and others.

Threat to: Financial advisors, gender neutral robo advisors

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Fundrise, Washington, D.C.

Crowdfunding platform that allows anyone with $500 to invest in diversified real estate portfolios. Launched eFunds in 2017, selling shares in portfolios dedicated to building and remodeling single family housing in urban locations.

Bona fides: About 17,000 investors have put $300 million into deals through the platform.

Cofounder & CEO: Ben Miller, 41, son of Washington D.C. developer Herbert  S. Miller

Funding: $50 million from Renren, Guggenheim Partners, Berman Enterprises and others

Threat to: Other real estate crowdfunding sites, traditional REITs

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iCapital Network, New York City

Online platform allows high-net-worth individuals and their advisors to analyze and invest in alternative assets such as private equity, venture capital, real estate and hedge funds with smaller amounts—in some cases as little as $100,000 per fund. Recently acquired the U.S. Private Equity Access Fund Platform from Deutsche Bank.

Bona fides: Post acquisition services more than $5 billion in capital in nearly 10,000 investor accounts.

Cofounders: Managing partners Dan Vene, 42 and Nick Veronis, 53. Current CEO: Goldman Sachs alum Lawrence Calcano, 55.

Funding: $55 million from Credit Suisse, BlackRock, Morgan Stanley, UBS, BNY Mellon and others

Threat to: Artivest, CAIS

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Robinhood, Palo Alto, CA

Mobile app offering basic stock trades for free, plus a $10 a month service, Robinhood Gold, that gives investors access to extended trading hours and margin loans (at no interest cost, above the monthly fee). Launching Robinhood Crypto, which will allow users to trade Bitcoin and Ethereum commission-free.

Bona fides: Three million users. More than $100 billion in trades placed on app.

Founders and Co-CEOs: Baiju Bhatt, 33, and Forbes 30 Under 30 member Vlad Tenev, 31

Funding: $176 million from Yuri Milner’s DST Global, Josh Kushner’s Thrive Capital, NEA, Index Ventures, actors Jared Leto and Ashton Kutcher and others. Latest valuation: $1.3 billion

Threat to: Discount brokers

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Read more:

Full list of the Fintech 50 2018

Forbes Fintech 50 2018: The Newcomers

Forbes Fintech 50 2018: The Future Of Lending

Forbes Fintech 50 2018: The Future Of Payments

Forbes Fintech 50 2018: The Future Of Personal Finance

Forbes Fintech 50 2018: The Future Of Blockchain And Cryptocurrency

Forbes Fintech 50 2018: The Future Of Wall Street And Big Data

Forbes Fintech 50 2018: The Future Of Real Estate And Finance