FutureAdvisor, a San Francisco-based wealthtech venture, was founded in 2010 by Bo Lu and Jon Xu.
FutureAdvisor offers a wide range of automated online investment and retirement advisory services that are mostly based on low-cost index funds that cover a wide range of asset classes. FutureAdvisor offers several service options from which investors can choose from.
In August 2015, asset management giant BlackRock acquired FutureAdvisor at an undisclosed sum. Later it has been stated by multiple sources that BlackRock purchased FutureAdvisor for $152 million (or $150-200 million according to TechCrunch). Before being acquired, FutureAdvisor had gathered over $21 million in funding from venture capitalists and was valued at around $75 million before being acquired.
After BlackRock acquired FutureAdvisor, “We have been, in most cases, getting the best of both worlds,” co-founder and CTO Jon Xu stated in an interview to Business Insider back in mid-2016. More importantly, as journalist Matt Weinberg notes in his article, “The real thing that makes FutureAdvisor’s status as a startup-within-a-huge-company important, Xu says, is its ability to try new things, ‘learn quickly,’ and report back to the BlackRock mothership. It’s a mindset that BlackRock encourages, Xu says – BlackRock is still run by its founders, and still retains some of those ‘entrepreneurial roots.'” 1)See, for more information, Wilson, J. (2016, Dec 19). “The Rise of Robo-Advisors: Part 2“. RIA Valuation Insights (Mercer Capital).
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|1.||↲||See, for more information, Wilson, J. (2016, Dec 19). “The Rise of Robo-Advisors: Part 2“. RIA Valuation Insights (Mercer Capital).|