Monark Markets Raises $2.2M in Seed Round
Monark Markets, a fintech startup focused on embedding private market investments into traditional brokerage and wealth platforms, has successfully raised $2.2 million in a seed funding round.
Led by Garuda Ventures, the round also saw participation from K50 Ventures, Grit Capital Partners, Niche Capital, and notable angel investors, including Nik Talreja and Shriram Bhashyam of Sydecar.
This latest injection of capital brings Monark’s total funding to $3.6 million since its inception in 2022.
Ben Haber, Co-founder and CEO of Monark, expressed his gratitude towards those who contributed to the round, saying, "We are truly grateful to everyone within the Monark network who helped bring this financing round together."
Haber highlighted that Monark’s mission is to tackle a significant infrastructure challenge in capital markets, aiming to make private investments accessible at a large scale.
"The entire Monark team has been energized by the possibilities that this financing round enables," he added.
Monark is positioning itself as a leader in the alternative investments space by addressing the growing demand from mass-affluent investors. According to Bain, this segment is estimated to reach $9.4 trillion by 2032. Monark’s platform is designed to seamlessly integrate private market solutions into existing brokerage and wealth platforms, making it easier for everyday investors to access opportunities typically reserved for institutional clients.
Paul Davis, Monark’s COO, emphasized the platform's potential to transform how brokerages offer private investments.
“Monark's API stack offers direct-to-consumer investment platforms that have already scaled their user base by providing access to public markets, a way to increase their revenue per user by offering private securities,” said Davis.
The platform's focus on alternative securities offers brokerages the chance to diversify their offerings and capitalize on cross-selling private investments—an area that has been underserved by many traditional platforms.
The funding round also marks a significant milestone in Monark’s broader strategy. In 2023, the company acquired the technology assets and intellectual property of LEX Markets, a company that had previously raised $27 million in venture funding. The acquisition allows Monark to expand its capabilities in structuring and delivering private investment products.
Rishi Taparia, Co-Founder and General Partner at Garuda Ventures, praised Monark’s rapid progress in the highly regulated capital markets ecosystem, citing its strategic acquisitions as game-changers. "When we first met Ben and Paul, we knew that they were building something special.
The strategic acquisitions of LEX Markets and of Monark's broker-dealer subsidiary, MMM Securities, greatly accelerated Monark's entry into the highly regulated capital markets ecosystem," Taparia explained. He believes Monark is well-positioned to become a category leader in this space.
With plans to launch with Beta partners in Q4 2024, Monark is poised to disrupt the traditional model of capital markets, providing a better and more accessible experience for investors. As the company moves forward, the infusion of new capital will enable it to refine its platform, expand its offerings, and navigate the complex regulatory landscape.
The fintech firm’s mission is not without its challenges, but with regulatory approval from FINRA to operate its subsidiary MMM Securities LLC as a broker-dealer, Monark has cleared a significant hurdle in a space where many startups struggle.
