Funding to Drive Company’s Next Phase of Investor Growth, Innovative Investment Products and International Expansion
Yieldstreet, a leading digital investing platform driven to help millions of people claim financial independence by unlocking access to previously unattainable alternative investments, today announced its $100 million Series C funding round.
Tarsadia Investments, led the round, joined by Kingfisher Investment, Top Tier Capital Partners and Gaingels. Existing investors, Edison Partners, Soros Fund Management, Greenspring Associates, Raine Ventures, Greycroft and Expansion Venture Capital also participated. Yieldstreet will channel the new funding to expand its user base, develop new investment products, explore international expansion, and pursue strategic acquisitions.
Yieldstreet was founded by Milind Mehere and Michael Weisz to digitally transform and democratize access to alternative investments, historically the near-total domain of the ultrawealthy and institutional investors. With the diversification opportunity offered by the Yieldstreet platform, retail investors can now modernize their digital portfolios across multiple asset classes and strategies. The appeal of these newly available options is seen in strong investor demand for Yieldstreet’s investment platform; both investment requests and new investors have surged through May of 2021, each up over 250% over 2020, with new investors already exceeding all of 2020.
“We’re on the brink of the greatest wealth transfer in history as Baby Boomers pass the torch to new generations. The consumer has changed, yet the tools and infrastructure in wealth management haven’t kept pace,” says Mehere, CEO and Founder of Yieldstreet. “It’s a new world—a mobile-first digital one—so we’ve created a platform to eliminate the built-in friction points to better connect with consumers wherever they are, help educate and provide access to investments to fuel their life goals.”
The Series C investment underscores the industry’s growing recognition of Yieldstreet as a transformative digital platform capable of helping investors reach new streams of wealth to propel their financial outcomes and realize long-horizon goals. As the era of digital transformation accelerates, Yieldstreet is uniquely positioned to help individuals tap into modern investment strategies, with portfolios working around the clock to automatically apply earned income toward everyday expenses.
“The 60/40 investment model is over; you simply can’t retire on bonds yielding less than two percent, so alternatives are not optional but needed for every portfolio,” says Mitch Caplan, President of Tarsadia Investments and former CEO of E*TRADE. “Milind and Michael have a clear understanding of what is needed and have assembled a strong leadership team to unlock the future of investing, today. I have no doubt that Yieldstreet will be a household name in alternative investments—which sets them worlds apart from other ventures we’ve analyzed.”
Having an investor like Tarsadia with Caplan’s vast experience, which includes spearheading the transformation of E*TRADE to a fully integrated online investing platform as the company’s CEO, validates Yieldstreet’s strategic plan as it scales its offerings to a full-service digital wealth management platform across distribution channels and investment classes.
“We deserve to have our money work as hard for us as we do for it,” added Weisz, President, Chief Investment Officer, and Founder of Yieldstreet. “By creating a digitally native investment platform providing a beautiful user experience, transparency and a portfolio that generates passive income and asset growth via an array of alternative investments, we’re fundamentally changing the way the Yieldstreet community interacts with their money.”
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