Tarsadia Investments led the fundraising round, including Gaingels, Kingfisher Investment, and Top Tier Capital Partners. Existing investors, including Edison Partners, Soros Fund Management, Greenspring Associates, Raine Ventures, Greycroft, and Expansion Venture Capital, also participated in the deal. With the recently collected funds, Yieldstreet intends to increase its user base, develop new investment products, look into the prospect of entering other markets, and pursue strategic acquisitions.
Yieldstreet was founded by Milind Mehere and Michael Weisz to digitally revolutionise and democratise access to alternative investments, which had hitherto been the near-exclusive realm of very wealthy people and institutional investors. The Yieldstreet platform’s ability to provide diversification options has allowed retail investors to update their digital portfolios across various asset classes and investing methods. Through May 2021, investment requests and new investors both soared, each up more than 250% over the same time in 2020. The number of new investors now surpassed that of all investors in 2020. The high investor demand shows the popularity of the new investment alternatives for Yieldstreet’s investing platform.
The demonstration
The most significant transfer of wealth in human history will occur when the Baby Boomer generation passes the torch to the younger generations. There, the CEO and Founder of Yieldstreet claims that the tools and infrastructure in wealth management haven’t kept pace with the changes in the client. Consumers have changed; we’ve developed a platform to lessen the inherent friction points to engage clients better wherever they are, aid in educating them, and provide access to investments to fuel their life goals since it’s a new world—a mobile-first digital one.
The 100m Series C investment demonstrates the rising industry acceptance of Yieldstreet as a revolutionary digital platform that may help investors obtain access to new sources of wealth, enhance their financial results and realise their long-term goals. With the speed of digital change increasing, Yieldstreet is uniquely positioned to assist people using cutting-edge investing ideas. The firm is in a position to help people achieve this since Yieldstreet portfolios operate around the clock to put generated revenue toward regular costs automatically.
The 60/40 investing paradigm is obsolete; you can’t retire on bonds producing less than two per cent. Thus alternatives are not optional but necessary for every portfolio, claims Mitch Caplan, president of Tarsadia Investments and former CEO of E TRADE. In an interview, Caplan said these things. The 60/40 investing strategy is obsolete. To fully realise the promise of investing in the present and the future, Milind and Michael have a crystal-clear vision of what is needed and have assembled a powerful leadership team. I believe Yieldstreet stands head and shoulders above the other companies we looked at; they will establish themselves as a household name in the alternative investment space.
Attracting an investors
Being able to attract an investor like Tarsadia with Caplan’s extensive experience validates Yieldstreet’s strategic plan as it expands its offerings to become a full-service digital wealth management platform across distribution channels and investment classes. Caplan’s experience includes leading the transformation of E*TRADE to a fully integrated online investing platform as the company’s CEO. While serving as the company’s CEO, Caplan was in charge of guiding E*TRADE’s development into a fully integrated online investment platform.
Weisz, president, chief investment officer, and founder of Yieldstreet, stated, “We deserve to have our money work as hard for us as we do for it. A firm that specialises in yield-based investment is called Yieldstreet. By creating a digitally native investment platform that offers a beautiful user experience, transparency, and a portfolio that generates passive income and asset growth via various alternative investments, says Yieldstreet, “We are fundamentally changing how the Yieldstreet community interacts with their money.” In addition to transparency and a portfolio that will provide passive income and asset growth, this platform will offer an incredible user experience.