Just as this epic bull run looked to be coming to a close - at the end of last year - ICONIQ’s assets under management totaled $83.5 billion, according to the private investor presentation. ICONIQ has invested in more than 120 companies, deploying $12.9 billion in capital. ICONIQ is at once a family office for the ultra wealthy, a growth fund that competes with the likes of Tiger Global, a major real estate investor, and an impact investor. Since ICONIQ was founded in 2011, Makan has exploded the firm’s reach. The firm’s advisory board comprises some of the most powerful investors and tech business leaders in the world: LinkedIn co-founder Reid Hoffman, Asana CEO Dustin Moskovitz, Yahoo! co-founder Jerry Yang, General Motors CEO Mary Barra, Johnson & Johnson executive chairman Alex Gorsky, Tiger Global founder Chase Coleman, founding TPG partner David Bonderman, co-CEO of KKR Henry Kravis, Indian steel magnate Aditya Mittal, and Zuckerberg. If you know anything about ICONIQ, it’s probably that the firm built its reputation on the back of managing some of Mark Zuckerberg’s enormous fortune.Ī private fundraising presentation that I’ve obtained makes clear that Zuckerberg, who remains an advisor to the firm, is far from the only headline name with deep connections to ICONIQ. A spokesperson for ICONIQ declined to comment. That gives the firm a deep reserve of dry powder as tech stocks - including ICONIQ portfolio companies like Snowflake and Datadog - crater. I can report that the fund - ICONIQ Strategic Partners VII- has been raised and totals $6 billion, according to a source. ICONIQ has been in the process of raising its seventh growth fund. The firm counts some of the wealthiest and most connected billionaires in the world as clients and consiglieres. The funding round was led by the previously mentioned DST Global and CEO David Velez said the new capital would “serve to further strengthen our balance sheet to support the accelerated growth we have seen since launch.If there’s any investment firm that’s truly a backroom cabal of rich and powerful tech elites, it’s Divesh Makan’s ICONIQ Capital. Sao Paulo-based challenger bank Nubank raised $150m in a Series E round in March last year. Additionally, one of the top 10 deals globally since 2014 was completed by a company based in that region. Out of all the WealthTech transactions completed in Rest of World across the last five years, 47.3% were raised by startups based in Australasia and 32.4% were raised by South America- based companies. Companies in Rest of World attracted 8.2% of total deals last year, a 2.3 pp increase from 2014. In every other year since 2014 the share of deals in Europe has been second only to North America. Companies based in Europe attracted 38.3% of the total deals in 2017, the highest deal share of any region that year. Additionally, apart from the previously mentioned Robinhood deal, none of the top 10 WealthTech transactions in the last five years were raised by companies based in North America.Įach of the other three regions, Europe, Asia and Rest of World, have increased their share of deal activity since 2014. Although, this share increased slightly, by 3.4 pp last year, it is clear that the US is loosening its hold on the global WealthTech market as FinTech hubs start to form in other regions around the world. The share of WealthTech deals in North America has decreased by nearly a quarter since 2014Ĭompanies in North America attracted a smaller share of transactions every year from 2014 to 2017, going from 54.8% to 38.0% during this period. Deal activity in the WealthTech sector, which peaked in 2016 with 281 deals, declined 21.7% to 220 deals last year. Currently, the neobank has more than two million customers globally and said in a press release last year that it is signing up between 6,000 and 9,000 new users each day. The London-based challenger bank, which was valued at £300m in 2017, reached unicorn status with the funding round valuing the company at £1.2bn. The second largest funding round in 2018 was $250m raised by Revolut in a Series C round. Robinhood plans to use the capital injection to expand product line-up. Venture capital firms Kleiner Perkins, Sequoia Capital, CapitalG and investment firm ICONIQ Capital also participated. The funding round in March last year was led by DST Global, a venture capital firm specialising in late stage investments. The Menlo Park-based startup offers commission-free trading for stocks, ETFs, options and cryptocurrencies all available in one platform. The biggest deal last year was Robinhood’s $363m Series D round. There were 27 transactions valued at $50m or above which collectively raised $2.7bn, as opposed to only 13 deals in this bracket in 2017 which raised approximately half of this amount. This was an increase of 65.9% from the previous year. Capital raised by WealthTech companies reached $4.6bn across 220 deals in 2018.
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