Sequoia Capital pumps $5M into Seattle’s FutureAdvisor

FutureAdvisor, the online investment advisor launched earlier this year out of Mountain View’s Y Combinator, said today is has raised $5 milliion in funding from Sequoia Capital. FutureAdvisor says it helps “everyday investors” save money by analyzing their 401(k) fees and making portfolio recommendations.

FutureAdvisor co-founder Bo Lu

FutureAdvisor co-founder Bo Lu: “We feel that everyone should have access to quality financial services like this and not just the wealthy.”

 

 

 

 

 

 

 

 

 

Other investors include PayPal mafiosi Jeremy Stoppelman and Keith Rabois.

Here’s the press release:  

FutureAdvisor Raises $5 Million in Series A Funding

 FutureAdvisor Now Analyzes Over $3.5 Billion in Assets and Announces The Industry’s First Personalized 401(k) Fee Recommendation Features

SEATTLE – August 22, 2012 – FutureAdvisor, the online investment advisor for the everyday investor, today announced $5 million in Series A funding from Sequoia Capital. The company now analyzes over $3.5 billion in assets and saves its users, on aggregate, $3 million per year that translates into a savings of up to $50 million projected over a lifetime. FutureAdvisor also today unveiled the industry’s first personalized 401(k) fee analysis and recommendation features, designed to help people save on fees in their 401(k) portfolio after new fee regulations went into effect.  These new features are available today for free at www.futureadvisor.com/401k.

FutureAdvisor Funding and Market Momentum

Sequoia Capital has invested an additional $5 million in FutureAdvisor, completing its Series A round. The founding team includes financial industry veterans, top software engineers from Microsoft and math PhDs from top universities. In addition, FutureAdvisor is backed by angel investors, Square’s Chief Operating Offer, Keith Rabois and Yelp founder Jeremy Stoppelman. FutureAdvisor is on a mission to help everyday people achieve their investment goals with a free web service that’s built on research-backed financial algorithms.

“We feel that everyone should have access to quality financial services like this and not just the wealthy,” said Bo Lu, co-founder of FutureAdvisor. “We take this responsibility very seriously. Our customers are key to our innovation – we will continue to listen closely to their feedback and rollout new features to help them achieve their investment goals.”

Over the past year, FutureAdvisor’s customer base has grown.

  • $3.5 million in assets are currently connected or under analysis by FutureAdvisor
  • FutureAdvisor now supports recommendations for 401(k) plans of over 11 million Americans

FutureAdvisor Adds New 401(k) Fee Analysis Feature  

“In light of the new 401(k) fee disclosure regulations, we are excited to announce FutureAdvisor’s new fee analysis features designed to help the average person make sense of fees in their 401(k) and help them understand the impact to their retirement picture,” said Bo Lu, co-founder of FutureAdvisor.

In response to recent government 401(k) fee disclosure regulation, requiring plan administrators to disclose detailed fees charged to participating employees, FutureAdvisor’s new 401(k) fee recommendation feature is an industry first. The feature analyzes a person’s 401(k) investment portfolio and shows how much they are paying in fees per year and over the lifetime of his or her investments. It then provides personalized, actionable recommendations to help people minimize fees and, ultimately, save more money for retirement.

The new feature offers:

  • 401(K) Ratings. People can go to FutureAdvisor.com and without signing up, see how expensive or reasonable their 401(k) plan is on average. It also shows in a clear and simple way how the FutureAdvisor recommended portfolios compare.
  • Fee and Diversification Analysis. For customers that sign up for the free service, FutureAdvisor will show exactly how much they’re currently paying per year in their 401(k) and provide recommendations to reduce fees and diversify.

Pricing and Availability

FutureAdvisor and its new 401(k) fee analysis features are free and available today online at: www.futureadvisor.com/401(k).

About FutureAdvisor

­Founded in 2010, FutureAdvisor believes financial advice should be accessible to everyone, not just the wealthy. Built on research-backed algorithms, FutureAdvisor’s free web service gives everyday investors personalized recommendations to reduce fees, maximize tax efficiency, and select the right assets in their portfolios Unlike traditional advisors, FutureAdvisor is free and requires no minimum assets. The founding team includes financial industry veterans, top software engineers from Microsoft and several math PhDs from top universities. Based in Seattle and a Y Combinator funded company, FutureAdvisor is backed by Sequoia Capital and angel investors, Square’s Chief Operating Offer, Keith Rabois and Yelp founder Jeremy Stoppelman. Visit them at www.futureadvisor.com, www.facebook.com/FutureAdvisor and www.twitter.com/futureadvisor.

 

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