Grifin, an app that links investing to daily spending, has announced a $11M Series A investment funding round led by Nava Ventures, with participation from TTV, Draper Associates, Gaingels, Nevcaut Ventures and Alloy Labs. Freddie Martignetti, Partner at Nava Ventures, will join Grifin’s board. Martignetti’s previous investments include Warby Parker, FIGS Scrubs, Drizly, and Everly Health.
The app creates a fully personalized investment portfolio based on an investor’s everyday habits. Grifin’s technology is fully automated, constantly adapting to the investor’s lifestyle and shopping habits while offering complete control over investment amounts.
“We are thrilled to partner with Grifin in their mission to make investing fit into the daily lives of people across the country,” said Martignetti. “With more than 178 million uninvested Americans, Grifin has the potential to make a remarkably positive impact by helping their app users lay the foundation for long-term wealth building.”
The American investment gap is real: 86% of Americans don’t directly own any stock, and more than 73% of the country doesn’t have a single dollar invested in a 401 (k) or mutual fund. For most Americans, the stock market can be intimidating, with thousands of different investment products making it difficult for the average person to know where to invest.
There are many psychological factors that contribute to an individual’s reluctance to invest. Many people fear the complexities of investing and have apprehension about potential losses and market volatility. Grifin helps to normalize these complexities and creates value behind the ownership of the brands people are putting their money towards.
Grifin simplifies the process of investing by automatically purchasing stocks in companies where the investor is already a customer. Grifin automatically invests $1 per transaction. For example, if a Grifin user buys something at Walmart, the app transfers $1 from their bank account to their investment account, and they buy $1 of Walmart stock. Users can also manually increase the investment amount to their choosing.
“We have always believed that investing should be positive and fun. Where it doesn’t feel like a second job, it simply feels like second nature,” said Aaron Froug, CEO and co-founder. “Unlike traditional investing, Grifin instills confidence through action and connection. Our goal is to build daily investment habits, different mindsets and change the relationship people have with the brands they love. This new funding enables us the fuel to scale a product that’s already proven its power to increase investing habits in a whole new way.”
Over the last year, the app has added 500,000 registered users. It also saw more than 100,000 new app installs in the last month. The majority of Grifin investors are women between the ages of 40 and 60, a traditionally under-invested group. Internal data shows people spend more on their favorite brands when they have ownership in them. For example, six months after buying Walmart stock, users spend 234% more there.
To date, the company has raised more than $20 million. The company will use this new capital to expand its team, partner with HR platforms and consumer brands, build family plans so kids can start investing early, and expand Grifin’s offerings with the kinds of tools and experiences their users are asking for.
“Grifin has reimagined what investing can feel like,” said Bo Starr, co-founder and co-CEO. “We are building not just a platform, but a new relationship between people and the brands they support.”