FutureAdvisor provides algorithmic portfolio optimization and account aggregation, offering free advisory tools and a paid service that can act as the day‑to‑day portfolio manager. The company targets the mass middle American market—clients with roughly $100,000 and multiple accounts—rather than the wealthier, tech‑savvy users of rivals. Its paid product typically charges about 0.5% in management fees when FutureAdvisor manages accounts. FutureAdvisor has agreements with TD Ameritrade and Fidelity to act as custodians for users' portfolios. The company planned to use new funding to double its headcount from 20 to over 40 employees by the end of the year. Assets under management have grown from about $13 million in September to $110 million today. FutureAdvisor provides automated investment recommendations for retirement accounts, focusing on helping users optimize 401(k) allocations and reduce fees. Launched about two years ago and publicly available for roughly four months, the platform analyzes roughly $4 billion in aggregate retirement assets. It reports making recommendations for more than 11 million Americans' 401(k) accounts and projects those users could save up to $50 million over their lifetimes. The company recently introduced a 401(k) fee analyzer that visualizes fees paid to mutual fund providers and suggests lower-fee alternatives. FutureAdvisor plans to use new funding to accelerate growth and further develop tools that help users save on investment fees. No revenue figures are disclosed in the article.

Total raised

$21M

Funding rounds

2

Latest round

Series B

Latest activity

May 2014