Key US WealthTech investment stats in 2024:
- US WealthTech deal activity dropped by 65% YoY
- Both small and large deals declined during 2024 as investors grew cautious
- Altruist, a modern digital custodian built for independent Registered Investment Advisors (RIAs), secured one of the biggest US WealthTech deals of the year with a $169m Series E funding round
US WealthTech deal activity dropped by 65% YoY
The US WealthTech market saw a sharp contraction in both deal volume and total funding between 2020 and 2024, reflecting broader economic challenges and shifts in investment focus.
Total funding in 2024 amounted to $8.2bn, marking a 65% decline from the $23.1bn raised in 2023 and a 72% drop from the $29bn raised in 2020.
Deal volume also decreased significantly, with only 424 deals in 2024, down 66% from the 1,261 deals in 2023 and 74% lower than the 1,660 deals recorded in 2020.
The average deal size increased to $19.3m in 2024, a 10% rise from $18.3m in 2023 and 28% higher than $17.5m in 2020, indicating a preference among investors for higher-value opportunities despite the overall downturn in activity.
Both small and large deals declined during 2024 as investors grew cautious
Funding from deals under $100m in 2024 totalled $3.9bn, a 60% decline from the $9.6bn recorded in 2023 and a 67% drop from the $11.9bn raised in 2020.
Deals valued at $100m or more contributed $4.3bn in 2024, reflecting a 68% decline from the $13.5bn recorded in 2023 and a 75% drop from the $17.1bn raised in 2020.
These declines underscore a pullback in both small-scale and high-value transactions, highlighting investor caution as they navigate a challenging market environment and focus their capital on fewer, strategically selected opportunities.
Altruist, a modern digital custodian built for independent Registered Investment Advisors (RIAs), secured one of the biggest US WealthTech deals of the year with a $169m Series E funding round
The funding round was led by ICONIQ Growth, along with participation from Granite Capital Management and continued support from Adams Street Partners and Sound Ventures.
This round, which brings Altruist’s total funding to over $450 million and values the company at more than $1.5bn, underscores its rapid growth as it disrupts an industry traditionally dominated by legacy custodians.
Altruist has achieved remarkable milestones, including a 550% revenue growth in 2023 and tripling its assets under management for two consecutive years, positioning it as the third-largest custodian by RIAs served.
The company’s self-clearing brokerage capabilities, combined with its integrated software for account management, trading, and reporting, are designed to streamline workflows and reduce costs for advisors.
With plans to scale its service organization, enhance technology, and launch innovative offerings such as the 5.10% APY Altruist Cash account, Altruist continues to transform the RIA landscape with a focus on efficiency, transparency, and client outcomes.
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