The US-based fintech raised the Series C funding for its alternative investment platform, per TechCrunch. YieldStreet gives users access to alternative investments like real estate, art finance, and marine finance. It also has a service that lets users raise capital. The fintech will use the fresh funding to develop new investment products, expand internationally into Europe and Asia, and pursue strategic acquisitions. It’s also exploring potentially going public via a SPAC in the next few years and has already been approached by a few companies.
Yieldstreet’s services give retail investors access to a wider range of assets, which is why the platform has seen strong growth in recent years.
Yieldstreet shows another way in which fintechs are democratizing investments and could present a roadmap for other platforms to diversify. Fintechs like Robinhood and eToro have worked to make stocks available to retail investors, who now account for one-fifth of equity volumes, up from one-tenth a decade ago. But democratizing investments doesn’t end with the stock market, and alternative investments are another fruitful way for investors to earn passive income. Global alternative assets under management reached $10 trillion in June 2019 and are on track to exceed $14 trillion by 2023, per a Preqin forecast. (These numbers might be conservative, as they were made before the recent crypto boom.) And while Yieldstreet has carved a niche for itself by focusing on alternative assets, other investment fintechs may soon follow into the space to differentiate their stock trading platforms, much like they’ve done with adding crypto investments over the last few years.