Transforming Investment And Wealth Management. From robo-advisors to mobile investing, fintech startups continue to create technology aimed at retail investors and advisors.
We define investment & wealth management tech to include fintech companies that offer an alternative to traditional wealth management firms and technology-enabled tools that are advancing the investment and wealth management profession. This includes full-service brokerage alternatives, automated and semi-automated robo-advisors, self-service investment platforms, asset class specific marketplaces, and tools for both individual investors and advisors to keep up with the changing dynamics in wealth management.
This category excludes both personal and corporate expense management and monitoring tools, tools specific to investment banks, and high-frequency trading platforms.
The category breakdown is as follows:
- Robo-advisor: This category includes automated investment platforms that leverage technology to lower account minimums and reduce annual advisory fees. The investments offered are tailored to the client’s risk profile typically based on a questionnaire. Robo-advisors differentiate themselves through a range of added services that can include a 24-hour automated support desk, access to a human advisor, tax optimization, and portfolio re-balancing.
- B2C: B2C robo-advisors target individual investors. One of the most well-funded robo-advisors is Wealthfront. Wealthfront has raised approximately $129.5M from investors, including Social Capital, Spark Capital, Greylock Partners, and Index Ventures.
- B2B: These companies offer white-label software for advisors and financial services firms to offer an automated investment strategy to their customers. This includes AdvisorEngine which raised a $20M Series A investment from WisdomTree Investments.