SigFig, the developer of an automated wealth management toolkit, has raised $50 million in a new round of funding.
The company said the new money would be used to continue its research and development.
The new funding was led by General Atlantic and included participation from existing investors like Bain Capital Ventures, DCM Ventures, Eaton Vance, New York Live, Nyca Partners, UBS and Union Square Ventures.
Unlike other tech-enabled advisory services firms like Betterment and WealthFront, which have primarily taken a direct to consumer approach, SigFig sells its tools primarily to financial services firms like Wells Fargo, UBS, and Citizens Bank.
SigFig also has a small direct to consumer business, which the company uses to test new products and services before bringing them to their main, business, customers.
SigFig’s chief executive and co-founder, Mike Sha, says that the blended approach of working with wealth managers actually allows his company to reach more customers than if they were to pitch their services directly to consumers.
Sha isn’t the only executive with that philosophy. Companies like Starburst Labs and FutureAdvisor have a blended, advisory focused approach according to market analysis companies like Owler and CBInsights.
“The market for digitally-native investment advisors continues to grow due to increasing customer demand for accessible and affordable financial advice,” said Paul Stamas, Managing Director at General Atlantic, in a statement.
SigFig makes money by selling its toolkit under a license to financial services firms and by taking a percentage of the assets that are managed through its tech.
Some of the new services that SigFig will look to develop (now that it’s raised additional capital) include the expansion of its advisory and planning capabilities to look at retirement planning and plan and save for other longterm goals, Sha said.
Sha declined to comment on the company’s valuation, revenue, or exact number of customers, but he did say