(Bloomberg) -- Wealth management startup Altruist says it has raised $169 million, elevating its valuation to more than $1.5 billion.

The company, based in the Los Angeles area, has received an investment led by Iconiq Growth, with participation from Granite Capital Management, Adams Street Partners and Sound Ventures, according to a statement reviewed by Bloomberg News.

Altruist, which aims to compete with Charles Schwab Corp. and Fidelity, refers to itself as a “modern custodian” building technology for financial advisers. Its software and app assist with account opening, trading and creating custom financial models.

The company’s revenue increased more than 550% in 2023 and it has tripled its assets under management for two consecutive years, according to the statement.

Altruist especially targets smaller advisory firms, which are looking for a less costly and more efficient way to scale their business. 

Altruist founder and Chief Executive Officer Jason Wenk said in an interview that there was an opportunity to improve upon the technology offerings provided by wealth management incumbents. “It’s an old industry,” he said, and “the software was really bad.”

Altruist also is seeking to address the needs of underserved investors, including those in lower-income brackets. “There’s a really big gap between the access the wealthy people have,” he said, adding that even people with just $10,000 could benefit from wealth management. 

He said that Altruist’s approach has helped the company rapidly gain market share. An IPO is an eventual goal, but is a few years away, said Wenk. 

Iconiq Growth general partner Yoonkee Sull is joining the Altruist’s board. He said his firm invested in Altruist because there was room for innovation in an industry that has been slow to change.

Sull said he was impressed by Altruist’s “velocity at which they are shipping and innovating.” He said the product sells itself and lot of the growth has been “very inbound driven,” with investment advisers hearing about Altruist via word of mouth. 

Altruist got its start almost six years ago and has raised $450 million to date. Other existing investors include Insight Partners and Venrock. It was valued at $962 million in an investment last year, according to data provider PitchBook.

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