Altruist, a supplier of fintech platforms for financial advice, has obtained $169 million in investment, valuing the company at $1.5 billion, earning it unicorn status.

Registered investment advisors use the wealth management software provided by Los Angeles-based Altruist, which is a unique example of a growth-stage fintech unaffected by the current fintech deal-making freeze:

According to CEO Jason Wenk, Altruist saw a 550% increase in sales year over year in 2023 and may achieve cash-flow profitability by 2024. Wenk notes that because the firm is expanding so rapidly, few buyers can pay its value, which means that a strong M&A bid "would likely face significant antitrust scrutiny."

According to private market finance website PitchBook, fintech M&A deals in the US and Canada will plummet by 46% in 2023, marking a halt in recent years for these deals.

Wenk went on, "I never intended to sell the company; my intention was always to keep it private for as long as possible, or when it makes sense to take the company public."

We examine Altruist, its industry, and its potential future prospects in light of the company's recent unicorn status.

Altruism: upending the financial advising industry

The goal of Venice, California-based Altruist is to revolutionize the client service provided by financial advisers. The company, which employs about 300 people, has created a cutting-edge platform that simplifies back-office tasks and gives advisers access to state-of-the-art digital tools to improve productivity and provide outstanding client experiences.

A collection of software programs designed specifically for financial planners and registered investment advisers (RIAs) is the company's main offering.

Altruist's cutting-edge technology, which includes capabilities for automated trading, billing, and portfolio administration, frees advisers to concentrate on developing trusting bonds with customers and providing individualized financial advice.

The founder and CEO of Altruist, Jason Wenk, states, "We're on a mission to make professional financial advice better, more accessible, and truly customer-centric." "Our platform equips advisors with the tools they need to streamline their workflows, reduce operational complexities, and ultimately spend more time engaging with their clients."

Altruist offers a scalable and customizable solution to meet the various demands of a wide spectrum of financial advice businesses, from sole practitioners to major corporations. Its steadily growing clientele is a sign of the market's increasing need for contemporary, digitally-first offerings.

Altruist recently completed a $50 million Series B fundraising round, spearheaded by Insight Partners, which allowed it to accelerate product development and broaden its customer base. Enhancing the capabilities of its platform, investigating strategic alliances, and investigating related financial services sectors are some of its aspirational growth goals.

"The future of financial advice is digital, and Altruist is at the forefront of this transformation," Wenk states. "We're committed to continually innovating and pushing the boundaries of what's possible, empowering advisors to deliver exceptional value to their clients in an increasingly competitive landscape."