The State of Robo Advisors — Personal Financial Advisor as a Service

  • Pure Robo Advisors: Advisors managing money using robo advising platform.
  • Hybrid Robo: Advisors managing money using robo advising platform and also providing traditional financial advising.
  • Enablers: Help traditional advisers to manage their clients better and help individuals to better understand their portfolios.
  1. AUM growth trends: Robo Advisors have been growing their AUM at a phenomenal speed in the last 6 quarters. Wealthfront, Betterment, Personal Capital & Future Advisor are the top startups who gaining market share in the space.
AUM growth trends Major Players
Source: SEC Form ADV filings as of October 1st 2015
  1. Venture Funding: VC funding in Robo Advisors companies totaled over $750 million in last decade, with 2014 topping the leaderboard with $ 347 million. The venture funding year over year is shown below:
VC Funding Year over Year
  • Most Active VC’s: Institutional Venture Partners (IVP), Northwest Venture Partners, Foundation Capital, Accel Partners and Social+Capital Partnership have done 4 or more rounds in robo advisor companies. Spark Capital and Union Square Ventures have diversified their portfolio by investing in more than one Robo Advising startup.
Most Active VCs
  • Most VC’s investing in a Startup: Acorns, Scivantage, Wealthfront, MoneyFarm and Motif Investing have more than five VC firms investing in them. Following is the summary of companies with most number of VC’s participating in the funding rounds:
  • Most Funded Startups:

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Engineering Manager | Founder of Acing AI

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