Titan Democratizing Wealth Management

The Democratization of Fintech

Hello friends. I will continuously be experimenting with this newsletter for the foreseeable future and what I am writing about and how I am writing it. For right now, I will be righting about the future of technology from a Gen Z View.

Here is today’s topic: Titan Democratizing Wealth Management

Titan.com


What they do TL;DR:

Titan is a “hedge fund for everyone”. They operate multiple funds including, Crypto, Flagship, Opportunities, and Offshore. Instead of needing an account minimum of $100,000 or $1,000,000 to join a fund manager, you just need $100. Titan charges $5/month for every account under $10,000 and 1% for accounts over $10,000.

Simple, yet beautiful strategy.

The flagship fund invests in some of the top names in the market that routinely outperform the market. When the market dips, Titan applies a hedge strategy to protect your portfolio. The annualized return here is 22.1%. Simple, yet beautiful strategy.

Democratization in Fintech

Robinhood is democratizing trading. Commonstock is democratizing investment knowledge. Titan is democratizing hedge funds, which were once only available to the top 1% of America.

I remember Titan once saying they are “first class for your capital”. What a punchline. First class on planes is usually reserved for reward members and wealthy. The economy seats don’t have the the same accommodations that first class does. Same goes for the wealth management industry. Except now, that is changed.

Why I love this

Just 5 months after raising a Series A round, Titan raised $58 million during a Series B that valued them at $450 million.

Personally, this wasn’t a surprise. Since I joined the platform, the iteration and product roadmap has been stellar.

Aimed toward millennials and Gen Z, Titan has exploded off the recent investing trends. Personally, I love picking stocks, but I also love leaving it to the professionals, that is why 20% of my investing money is safe within Titan.

Titan’s growth, from what I’ve seen, has been driven mostly from word of mouth and the occasional ad on social media. The key to growth for them is their product. When a product like theirs is so outstanding, people can’t help but talk about it.

Here’s just a small list of features the app has:

  • Three things newsletter every morning that updates you on important events

  • Easy to read memos on why they made on an investment

  • Monthly portfolio snapshots

  • Videos from the CIO explaining recent market moves

  • Updates on what markets they are watching.

  • Ask a question whenever you feel like it

The Next 5 Years

I am personally really excited to watch Titan’s grow over the next 5 years. I think a lot of future growth can come from the strategic partnership space as well as advertising toward the millennial population and recent Gen Z college grads.

Growth: The future of Titan’s marketing I think can go a lot of different places. Doing a/b testing of different marketing messages mixed with with different platforms could give some really interesting data. Right now, I mostly see Titan on instagram, but wouldn’t be surprised to see them on a billboard or in the WSJ. I know from my experience kids my age don’t know what a hedge fund is, so a marketing message like “Titan manages your money for you so you don’t have to” could possibly do well with younger generations.

Product: In terms of product I am anxiously awaiting to see what they announce as the next fund. Personally, being interest in the venture space, I wonder how hard it is to create a venture fund under Titan’s umbrella. That may be a strategy where you can only reach out to accredited investors, but with regulations it can get difficult, so not expecting anything like that soon.

As more of the modern technology generation (Gen Z) graduates college, I believe Titan will be a place that can be very attractive toward passive investors.

Disclosures: I currently have money with Titan and was a college ambassador for them from January 2020-April 2020.