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Quick Series B Closure
San Francisco’s renowned RIA, Farther Finance Advisors, has made headlines by securing $31 million in a Series B funding round. Impressively, the round was led by the esteemed venture capital group, Lightspeed Venture Partners, and concluded in a mere four days. This rapid fundraising achievement has more than doubled Farther’s enterprise valuation, now standing at a commendable $131 million.
Farther’s Digital Prowess
Farther isn’t your typical RIA. It boasts a heavily digitalized approach, equipped with its unique proprietary wealth management technology. As of June, according to a filing with the Securities and Exchange Commission (SEC), the firm managed assets amounting to $676 million.
A Growing Pool of Backers
The recent Series B round has added Lightspeed to Farther’s impressive list of venture capital supporters. This list already includes notable names such as Bessemer Venture Partners, Cota Capital, Khosla Ventures, MassMutual Ventures, and Moneta Venture Capital. Since its inception in 2019, Farther has accumulated a total of $53 million from its investors. Notably, earlier this year, the firm wrapped up its Series A funding round, which brought in $15 million.
Farther’s Vision and Mission
Taylor Matthews, Farther’s Co-Founder and CEO, expressed his vision when establishing the firm. He aimed to create a wealth management entity rooted in modern technology. This would enable financial advisors to prioritize delivering an unparalleled experience to their clients. Matthews expressed his enthusiasm regarding the continued support from top-tier VCs through both the Series A and B funding rounds. He emphasized the firm’s commitment to enhancing both its team and the technology, ensuring Farther remains the preferred platform for wealth advisors and their clientele.
Investing in the Future
The newly acquired capital is earmarked for significant investments. Farther plans to channel these funds into its proprietary wealth management portal. Additionally, the firm is keen on bolstering its competitive compensation structure for advisors. This structure is touted as being considerably more robust than those found in traditional institutions.
Strategic Acquisitions and Founding Members
Recently, Citywire highlighted Farther’s strategic move of acquiring two California-based advisors from Goldman Sachs Personal Financial Management. This acquisition precedes the unit’s planned sale to the mega-RIA, Creative Planning. This move is just one in a series of departures from the $29.4 billion wealth management division in recent times.
At its core, Farther was the brainchild of Matthews and CTO Brad Genser. Genser, an Ex-Vice President at Goldman Sachs, parted ways with the bank in 2019. Matthews, with nearly two decades in the financial realm, has affiliations with giants like Fidelity, Barclays, and Deloitte. Genser, on the other hand, has almost ten years in the sector, having joined Goldman Sachs in 2014. Prior to this, he dedicated five years to serving the US Army, as per his LinkedIn insights.
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