BlackRock Acquires Sequoia-Backed FutureAdvisor
BlackRock, the world’s largest asset manager, is acquiring FutureAdvisor, a five-year-old, San Francisco-based online financial advisory firm that aims to help people manage their existing IRAs, 401(s) and other investment accounts.
According to the Financial Times, FutureAdvisor was picked up for between $150 million and $200 million.
The company had raised $21.5 million from investors, shows Crunchbase.
A Y Combinator alum, FutureAdvisor had first raised seed funding from high-profile angels like Keith Rabois and Jeremy Stoppelman before landing $5 million in Series A funding from Sequoia Capital in 2012. Last year, it raised $15.5 million in Series B funding led by Canvas Venture Fund. Its valuation at the time: a reported $75 million.
BlackRock says it doesn’t plan to target individual investors with the new acquisition; instead, it’s planning to use FutureAdvisor’s technology to enable banks and brokerage firms and the like to more seamlessly serve affluent investors. (FutureAdvisor had been expressly targeting consumers with between $100,000 and $1 million to invest.)
FutureAdvisor was cofounded by Bo Lu and Jon Xu, both former program managers for Microsoft. The company employed roughly 55 people.
This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.
See more here: