Tracxn – Analyst Notes # 948 – Robo Advisors

A daily newsletter summarizing recent activity & interesting start-ups globally

RECENT NOTABLE ACTIVITY – ROBO  ADVISORS

• WeatlhSimple, a Toronto-based advisor assisted Robo Advisor platform, raised C$20M ($15.25M) from Power Financial Corp. Link
• Money Design, a Japan-based Robo Advisor platform, raises $13.4M Series C round from Fenox Venture Capital. Link
• Folio, a Tokyo-based thematic investment platform, raises $16M Series A round from JAFCO, Monex Ventures, Mitsui Sumitomo Insurance Venture Capital, Rakuten, DCM Ventures, Draper Nexus. Link
• Blooom, a Kansas-based robo advisor platform focused on retirement accounts like 401k or 403b, raised $9.15M Series B round co-led by QED and Commerce Ventures with participation from Allianz Life Ventures, Nationwide Ventures, TTV Capital, KCRise Fund, Industry Ventures, and existing investor UMB. Link
• Yomoni, a Paris-based automated investment platform, raised $5.4M from Crédit Mutuel Arkéa and Iéna Venture. Link
• Trizic, a San Francisco-based digital investment technology provider to asset managers, banks, and RIAs, raises $3.3M investment round from led by Freestyle Capital, with participation from Broadhaven Capital Partners and Commerce Ventures. Link
• Nutmeg, a London-based automated Robo Advisor platform raised £12M ($14M) Series D round led by Taipei Fubon Bank. Link
• Personal Capital, a California-based online and advisor assisted wealth management platform, closed its Series E with $25M funding from IGM Financial and $25M in credit from Silicon Valley Bank. Link
• Hong Kong-based social trading startup 8 Securities launched a mobile-only robo-advisory service, called Chloe for the millennial generation that constructs portfolios with ETFs listed on the Tokyo Stock Exchange (TSE). Link
• Betterment, a New York-based fully automated investment platform, launched advisor assisted service. Link
• Merrill Lynch launched its Robo Advisory service called Merill Edge Guided Investing with a minimum investment amount of $5,000 at a price of 0.45% of asset annually. Link
• Wealthfront, a Palo Alto-based fully automated investment platform launched a new product called ‘Path’ to automate saving and expenditure rates and create a retirement plan. Link

SOME INTERESTING STARTUPS FOUND

Nalo (2016, Paris) – An automated investment platform in a diversified portfolio of ETFs and stocks. The user can describe their financial situation and objectives, the money is placed on a life insurance, and invested in a combination of index funds.
Miss Kaya (2016, Singapore) –  A women focused financial education and wealth management platform allowing women to receive guidance on their saving and budgeting, and then invest in particular portfolios.

LEADER BOARD – ROBO ADVISORS

Execution Platform – Full Stack Investing Platform
Betterment (2008, NYC, $205M) – Fully automated investment service with a focus on goal-based investment. Also offers a B2B service for RIAs. Backed by Bessemer Venture Partners, Francisco Partners, Citi, Menlo Ventures, Globespan Capital Partners, Red Swan Ventures, Anthemis Group, Kinnevik AB, Northwestern Mutual Life and Northwestern Mutual Capital.
Wealthfront (2008, Palo Alto, $129.5M) – Fully automated investment service. Backed by Greylock Partners, Index Ventures, Spark Capital, DAG Ventures, Ribbit Capital, Homebrew, SK Ventures, Maven Ventures and Social Capital.

Execution Platform – Full Stack Investing Platform – Micro Investing
Acorns (2012, Irvine, $76M) – Micro investment app for investing spare change into a portfolio of ETFs. Backed by PayPal, Greycroft Partners, Rakuten, e.ventures, Great Oaks Venture Capital, Steelpoint Capital Partners, Garland Capital Group, JAM Equity Partners, Point72 Asset Management, Cruttenden Partners, GroundSwell Inc, Math Venture Partners and Sound Ventures.
Stash (2015, NYC, $39M) – A small amount investment platform. Backed by Entree Capital, Breyer Capital, Valar Ventures, Goodwater Capital.

Execution Platform – Full Stack Investing Platform – Retirement Planning
Blooom (2013, Overland Park, $18M) – A wealth management platform focused on retirement accounts like 401k or 403b. Backed by QED Investors, Industry Ventures, Commerce Ventures, TTV Capital, Hyde Park Venture Partners, Nationwide Mutual Capital, Allianz Life, DST Systems, UMB Bank, Launch, KCRise Fund.
ForUsAll (2013, SF, $13.5M) – Platform for managing 401(K) accounts. Backed by Foundation Capital.

Execution Platform – Full Stack Investing Platform – P2P Loans Investment
LendingRobot (2012, Bellevue, $3M) – Automation tools for strategy optimization and systematic execution of investments in P2P loans. Backed by Runa Capital.

Execution Platform – Full Stack Investing Platform – Impact Investing
Ethic (2015, SF, $125K) – A full-stack automated investment platform focused on ethics based impact investing. Backed by 500 Startups, Kima Ventures.
OpenInvest (2015, Alameda, $120K) –  A Robo Advisor platform offering investment planning into socially responsible portfolios. Backed by Y Combinator.

Execution Platform – Full Stack Investing Platform – Thematic Investing
Motif Investing (2010, San Mateo, $126M) –  An online investment platform that enables users to create a basket (called a motif) of stocks and ETFs. Backed by Norwest Venture Partners, Balderton Capital, Goldman Sachs, Foundation Capital, Ignition Partners, JPMorgan Chase & Co., Renren.
Folio (2015, Tokyo, $19M) – An automated investment platform with thematic investment strategy. Backed by Rakuten, Draper Associates, DCM Ventures, Draper Nexus, JAFCO, Mitsui Sumitomo Insurance Venture Capital, Monex Ventures.

Execution Platform – Full Stack Investing Platform – Tax Saving Investment Platform
Wealthy (2015, Bangalore, $237K) – Automated advisor for tax saving investments. Backed by Investopad, TracxnLabs, Venture Highway.

Execution Platform – Advisor-Assisted Platform
PersonalCapital (2009, Redwood City, $177M) – Financial advice platform that provides human interaction as well as a digital tool to clients. Backed by Institutional Venture Partners, Venrock, Correlation Ventures, Crosslink Capital, BlackRock, Jump Capital partners, USAA, BBVA Ventures, Corsair Capital, IGM Financial, Jump Capital and Propel Venture Partners.
SigFig (2011, SF, $56M) – An online tool for automated investments with an advisor assistance. Backed by Union Square Ventures, UBS, Bain Capital Ventures, DCM Ventures, Comerica, Bain Capital, Eaton Vance, New York Life Insurance, Nyca Partners, Santander InnoVentures.

Enablers – Portfolio Management
Vestmark (2001, Boston, $52.5M) – Wealth management technology platform for broker-dealers and financial institutions. Backed by Summit Partners, Blue Chip Venture, and Hub Angels Investment Group.

Enablers – White Label Platform
AdvisorEngine (2014, NYC, $24M) –  A digital private-label wealth management platform for financial advisors. Backed by WisdomTree.
Jemstep (2008, Los Altos, $15M, Acq.) – White-label investment management solution to onboard, engage and serve client of financial advisors. Acquired by Invesco in January 2016.
Tamarac (2000, Seattle, $12M, Acq.) – White-label Robo Advisory software tools provider for brokerages, asset managers, banks, and RIAs. Acquired by Envestnet for $54M in February 2012.

Leaderboard includes all the top funded, IPO and successfully running bootstrapped companies along with their location, founding year and funding amount.

For latest update, visit Robo-Advisors feed.