Ex-Merrill Lynch WM Chief Raises $32.5M for Robo
Ellevest, the robo-advisor aimed at women and co-founded by a former Merrill Lynch chief, has raised $32.5 million in funding, HITC.com writes.
Founded by Sallie Krawcheck, who ran Merrill Lynch’s global wealth management unit for two years after leaving her post as CFO at Citigroup in 2008, Ellevest had raised $10 million in September 2015. The firm attracted another $9 million prior to last week’s announcement, according to HITC.com. And the latest round of funding still has another $2.2 million in stock to sell, according to last week’s SEC filing cited by the London-based financial news website. The final amount of the round could end up being bigger, according to HITC.com.
In addition to the capital infusion, Ellevest also gained Jenny Abramson, the founder of venture capital firm Rethink Impact, who joins Ellevest’s board of directors, HITC.com writes. According to the website, Abramson was also likely an investor in the latest round. Ellevest declined comment to HITC.com.
Ellevest is entering a crowded space that includes venture capital-backed robo-pioneers Wealthfront and Betterment, the website writes. But Krawcheck’s company is going after female clients with a platform that takes into account issues specific to women, such as the gender pay gap and career breaks, according to HITC.com. Ellevest’s investors already include Morningstar, Khosla Ventures, Aspect Ventures, the tennis player Venus Williams, Ariel Investments’s Melody Hobson and Mohamed El-Erian, chief economic adviser at Allianz, the website writes. Ellevest has also grown its staff from 13 to 30 last year, according to a CNBC.