Aspiration Closes $15.5 Million In Series A Funding Led By Renren
Fast-growing online investment firm with a conscience fills the chasm between Wall Street and the middle class, brings elite products and a revolutionary "pay what is fair" model to everyday Americans
LOS ANGELES, Sept. 17, 2015 /PRNewswire/ -- Aspiration, the next-generation financial services platform that combines making money and making a difference, announced today that it has closed $15.5 million in Series A funding. Renren led the round with participation from GSV Capital, Capricorn Investment Group, IGSB, and some of America's most prominent leaders in finance and technology, including David Bonderman, Gordon Crawford, Matthew Dowd, Rick Hess, Bill Lee, Joe Lonsdale, Alexis Maybank, Lenny Mendonca, Steven Rattner, Dan Rosensweig, Matthew Salzberg, Joseph Sanberg, and Frank Yeary.
"Aspiration is a financial firm for everyone that is built on the idea that profits and purpose can go hand-in-hand," said Andrei Cherny, CEO and co-founder of Aspiration. "We are thrilled that this approach has not only resonated with so many customers, but now has received the backing of a group of brilliant and innovative leaders who share our mission. With this additional capital and support, we can expand the products and services we offer to the growing ranks of the Aspiration community."
Joseph Chen, Chairman and CEO of Renren, commented, "Renren is committed to investing in the most important and fastest-growing fintech platforms, so we could not be more thrilled about the opportunity to invest in Aspiration. The financial industry is ripe for transformation and, with its 'do well and do good' approach, we believe Aspiration is poised to be one of the defining new financial brands for 21st century consumers – first in the United States and then around the world."
Aspiration creates and curates financial products and brings them directly to the customer at Aspiration.com, thereby disintermediating traditional advisors and middle-men. Aspiration's mutual funds have a $500 minimum investment. It recently unveiled a high-yield, FDIC-insured checking account: The Aspiration Summit Account offers up to 100 times the interest rates provided on checking accounts at the big banks, no minimum balance requirement or monthly service fees, and free access to every ATM in the world.
Aspiration's unmatched pro-investor approach trusts its customers to pay only what they think the company deserves, even if that means zero. Aspiration brings a unique charitable aspect to financial services by donating 10% of its revenue to charities providing microloans and mentoring for low-income Americans to start businesses – and helping its customers give to the causes of their choice as well.
Launched in November 2014, Aspiration has become one of the fastest growing online financial firms in America – eclipsing the growth rates of the so-called "robo-advisors":
- Over the past six months, Aspiration has been doubling its number of accounts an average of every six weeks.
- 60% of Aspiration's customers have not previously owned another retail investment product.
- Aspiration customers are in all 50 states and U.S. Armed Forces serving overseas, with over 70% outside of New York and California.
- While most Aspiration customers are Millennials, they range in age from 18 to 88.
- Over 90% of the investors in the Aspiration Flagship Fund choose to pay Aspiration even though they are not obligated to – a testament to the honorable nature of most Americans and the value Aspiration customers see in its products.
"Wall Street works great for a fortunate few, but most Americans have been left out of the possibility of wealth-creation because they haven't had a financial firm they felt they could trust or one laser-focused on their specific needs and goals," said Joseph N. Sanberg, co-founder and chair of Aspiration's Board of Advisors. "With its unique model, groundbreaking technology and customer-friendly education approach, Aspiration is successfully opening the doors of investing to the middle class."
About Aspiration
One of the fastest growing online investment platforms, Aspiration offers everyone the type of investment strategies that were once limited to only the wealthiest Americans. Using cutting-edge technology, Aspiration is revolutionizing how financial services are delivered to Americans by successfully pioneering a democratized and purpose-driven investment firm with a conscience and building an unprecedented level of trust with its customers. Aspiration Fund Adviser, LLC, a wholly-owned subsidiary of Aspiration Partners Inc., is registered with the United States Securities and Exchange Commission (SEC). Visit www.aspiration.com for more information or http://bit.ly/1UVQQhx to download the official press kit.
About Renren
Renren Inc. (NYSE: RENN) operates a leading real name social networking internet platform in China. It enables users to connect and communicate with each other, share information and user generated content, play online games, watch videos and enjoy a wide range of other features and services. Renren.com had approximately 227 million activated users as of June 30, 2015.
SOURCE Aspiration
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