April 2, 2019

Ellevest Arrives at End of $33 Million ‘Marathon’

By Samuel Steinberger

Despite having only $283 million in assets under management, $100 million of which is from high-net-worth clients, female-focused Ellevest, an automated advice platform or so-called robo advisor, announced a funding raise of $33 million last week. The round was led by Rethink Impact and PSP Growth, with celebrity cachet coming from new investors Pivotal Ventures, founded by Melinda Gates; PayPal; Elaine Wynn, co-founder of Wynn Resorts; former Executive Chairman of Google and Alphabet Eric Schmidt; and Valerie Jarrett, a former advisor to President Obama and author of Finding My Voice. In a blog post, Ellevest co-founder and CEO Sallie Krawcheck noted that the new funding would go toward “building its community” along with improving its technology, “expanding into new product categories” and bringing “non-boring” financial education to its users. Above all, the company expects the funding will accelerate its growth, she noted. A company spokesperson referred requests for details on timing of the new products and the prioritization of the four capital categories back to the blog post.