YieldStreet, a New York-based digital wealth management platform, has raised $62m of capital through a Series B financing round, led by growth equity investment firm Edison Partners.
Image: YieldStreet is a New York-based digital wealth management platform. Photo: courtesy of Business Wire.
YieldStreet will use the Series B capital for expanding its product offerings and audience to a larger set of retail investors.
The company will also look to scale origination, hire top-tier talent, and take up strategic acquisitions using the new capital.
The latest financing round also saw participation from Greenspring Associates along with existing investors Raine Ventures and an undisclosed multi-billion dollar New York family office.
The digital wealth management provider, which also has offices in Brazil, Argentina and Greece, has a total of $178m in equity and debt capital.
YieldStreet’s platform connects accredited investors to asset-based investment opportunities across various asset classes, and offers capital to borrowers.
Its customers can take part in a variety of alternative investments across multiple asset classes such as real estate, legal finance, marine and shipping, and commercial loans.
The company claims that most offerings released on its digital wealth management platform are fully subscribed within seconds.
Edison Partners managing partner Chris Sugden said: “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.
“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.”
YieldStreet said that in the last three years it has adopted an investor-first approach, growing a community of more than 100,000 that have invested over $600m on the platform. The company claims to have generated an excess of $50m of interest for its customer base.
YieldStreet founder and president Michael Weisz said: “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.”