Oisin Breen

Time for another pivot. The investor is always right. I learned this the hard way.

She seems like a corporate executive, not an entrepreneur. 400m at 50 bps with 77 mil in investment is atrociously bad. No wonder they are mad.

The problem with most ventures is that they raise far too much money (perhaps from the wrong investors) before they find the "fits" needed to scale a viable business.  These fits include the often talked about "product/market" variety, but also others including "market/business model", "business model/marketing channel", etc.

I don't think Ellevest has found anything new in their endeavors - market/business model is the same  AUM approach the industry has been built on,  similar product to other digital advisors, etc.  You've got 82 employees, over $70MM in money raised, and 4 years under your belt.  Where's the insight, Sally?  What have you learned on this journey?

This is a classic example of a high-profile executive with no street-smart hustle, plunges into a startup, raises a huge amount of VC Money = $78M! then fails to execute…

“Women are not a niche market” and capitalizing on that, is not sound business advice.

All the other women-centric robo advisors have folded.  So we are just saving the “best” for last.

The men-centric investment firms are a picture of success for their muppets?  Who was it that we muppets bailed out in 2008?  How many investment shacks did we bail out?  Who was at the head of them?

Why Sallie Krawcheck made a plea for 'divorce' from unnamed 'investors' as her Ellevest startup approaches its sixth birthday

Sallie Krawcheck

Stripped down to its essentials, financial advice is a fairly straightforward proposition. Done well, a highly ethical individual stewards the assets and actions of an investor in a personal and professional interchange.
 
But now a vibrant new class of entrepreneurs is staking their fates and their fortunes on the premise that financial advice can be delivered in a better, cheaper, easier, more ethical, more transparent manner and, as a bonus, in a way more devoid of human annoyance on both ends of the transaction.
 
Cue the robo-advisors, arguably a callous misnomer for automated asset management. 
 
The prototypical robo-advisory entrepreneur has more brands on his or her resume than NASCAR. The bona fides of these industry upstarts often include Ivy-level colleges and MBA programs at Harvard or Stanford. They are often flush with IPO dollars realized at concerns like LinkedIn, Facebook, eBay, Amazon  and Microsoft. 
 
Robo-folk believe that technology is not an enabler of advice but rather, if engineered correctly, advice itself in digital form. 
 
And, they believe the best solutions originate in Silicon Valley or academia, not Wall Street. Robo-entrepreneurs are white-boarding the whole business model, culture and technology from scratch in the conviction that little can be learned from a legacy advice system still rooted in an investment banking culture acting under the core premise that if stockbrokers get rich some of the good effects will trickle down to clients – with the clients none the wiser. 
 
Robo-advisors are a scintillating topic for students of the advice game as they grow by hundreds of millions in assets every month, constantly evolve their business models and receive cash infusions from ever-larger swaths of venture capitals.
 
Throw in the fact that robo-advisors have yet to see a dime in profits -- and won’t in the foreseeable future -- and you have real intrigue. 
 
RIABiz has avidly covered the fast-evolving robo-advice phenomenon and will continue to do so. We present the growing body of articles here.

Robo-Advisors

<p>The RIA business is many good things but integrated from a gender standpoint is not one of them. This is not so great. Women are the majority of humanity and they have an asset-building strategy that can't be beat. Women outlive their beer-and-steak mates and end up with big estates. But today's women have too another strategy -- pursuing wealth in the workplace. Yet when they go to find fellow women to talk all this through with, they don't readily find them.</p> 

<p>Companies big and small have for decades fallen over themselves to say that they have women's initiatives but I can't think of one that has amounted to much. But there are stories-- dozens or hundreds -- of them about women exerting their influence on this business and we are starting to collect them. It's a starting place -- documenting the ground being covered by women in the form of engaging tales graphically depicted by the physiognomy of the fairer sex.</p>

Women of Wealth Management

The robo-advisor still has AUM of just $400 million; Now investors need new patience as the co-founder pivots toward higher net-worth women willing to pay higher fees.

Why Sallie Krawcheck made a plea for 'divorce' from unnamed 'investors' as her Ellevest startup approaches its sixth birthday

Jeff Spears

The man

Brian Murphy

Jim

Keena

John D Rockefeller

The woman said...

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