Titan's journey began with a question: Why are two different menus offered to investors?
If you're an everyday person, you are given one menu - passive ETFs, mutual funds, the usual. If you are ultra wealthy, you get access to a different one, an elite one - hedge funds, venture capital, private equity, and more.
Today we're thrilled to announce a major milestone along our journey to tackle this question.
Titan has raised a $12.5M Series A financing led by venture capital firm General Catalyst, bringing our total funding to $16M. We're so excited to welcome the entire General Catalyst team to the Titan family and have Katherine Boyle join our Board. General Catalyst has backed some of the most disruptive consumer businesses of our era including: Airbnb, Snap, Warby Parker, and more.
Other partners we're excited to have joining this round include Ashton Kutcher's Sound Ventures, Scribble VC, BoxGroup, Y Combinator, South Park Commons, Lee Fixel, Instagram founder Mike Krieger, Eventbrite founder Kevin Hartz, and others.
Attached is the TechCrunch article covering our announcement.
The elephant in the room
This menu problem is the elephant in the room in consumer finance. Technology has sent shockwaves throughout many consumer finance categories - from banking to brokerage - but investment management remains stubbornly behind. Despite over $500 billion in public market capitalization and the financial well-being of millions of Americans at stake, the industry is still ruled by legacy giants like Fidelity, BlackRock, and T. Rowe Price. No modern platform has yet to emerge.
Titan is taking the torch and building the operating system that will power active investment management for future generations of investors. But this time, we can offer both sets of menus.
To put our journey into context, we look to history. Recall that Fidelity, now worth over $100 billion in enterprise value, was born during the Great Depression. The Fidelity Fund was launched to help smaller investors and pioneered investor communications through regular updates via postal mail. 32 years later, Fidelity would cross their first billion of assets under management.
Titan, in a sense, was born during the Great Pandemic. Last year we grew by 600%. We’ve pioneered investor communications via our mobile operating system, setting a new standard for the industry. But indicative of the power of technology, we're expecting to cross $1 billion in assets this year (3 years since launch) - an order of magnitude faster.
We hope to take this industry out of the Stone Age. The status quo of active investment management platforms is a combination of exorbitant minimums and black-box experiences (e.g., a 90-page prospectus). Even if you're ultra wealthy, the best you can get is a quarterly call with an underlying investment manager. We've upended this entire experience.
8 out of every 10 clients engage with Titan in some form each week. This is because every client - whether they have $1,000 with us or $100,000 with us - is treated like they have $10 million with us. Technology enables us to do things for everyone that previously were only limited to a very, very select few.
This engagement has been exceptionally important for our clients during the pandemic. They counted on us to explain the historic market collapse in March 2020; a period during which we had 99% client retention. They counted on us to identify and invest in under-the-radar businesses in a work-from-home world via our Titan Opportunities strategy. They recently counted on us to defend a portfolio company from a hostile takeover and fight for better value on their behalf. In every scenario, Titan delivered.
We're truly just getting started. With this Series A capital, we're accelerating our plans to give to everyday investors, big and small, the crème de la crème of investment management. We understand our place in history - it’s our duty to carry the torch of investing, established by iconic American giants, for decades to come.