SigFif Secures $15 Million in Funding
Among the major financial news, SigFig, which is a technology powered financial planning platform, recently managed to secure $15 million in business funding.
The startup has been in the limelight for its web based platform that allows clients to track and analyze their financial investments.
One of the main features available from SigFig is the syncing of multiple accounts. Users can sync their 401(k), IRA, trading and related accounts into one single dashboard.
From the dashboard, the entire cash flow can be managed. A major reason for the success of this model is that you can have a real time analysis of investments from all accounts in a single location.
Once all the data has been managed in one space, a number of tests can be carried on the investment, which is quite similar to a “simulation” model. For instance, users can check for the best business credit cards with rewards and the net results on their investments. This research can make for a great opportunity to profit.
The investments that underperform can put a dent in various aspects of personal finance. This service also allows easy access to a list of highest rates savings accounts,with which you can get several options for placing your investment/deposit in an account that grows your money over time.
The funding has been designated as SigFig’s Series B and is being led by Union Squares Ventures and Bain Capital Ventures. DCM, who is the previous backer of SigFig, is also included. Earlier this year, the startup crossed the $50 billion mark in assets managed by their platform.
The net investment for the startup has now added up to $20 million since its inception.
It’s the intention of the co-founder/CEO Mike Sha to use this money for growing the partnerships of SigFig. This is being done based on the precedent that the previous deals with the likes of USA today and Yahoo Finance have been rewarding for the company.
This has allowed the company to add several users to its database. Since the writing of this post, the company has managed to track $75 billion in assets.
The most recent important hiring that the company did was last year in March when Mark Britto was added as a Board Member. He is a 20 year veteran in financial services and a successful entrepreneur. The company, at the moment, has thirty employees. So the investment could also be used to increase the human resource of SigFig.
However, based upon what has been seen in the past, this may not turn out to be the case. The company has relied more on the use of technology and its advancement rather than relying on human financial advisors.
Therefore, a large chunk of investment would also be directed towards the expansion of portfolio analysis through technology.
Union squares ventures, one of the investors, has been known to invest in startups that rely on technology. Financial services in addition to media, marketing, telecommunications and health industry have been their focus throughout.
In a similar vein, Bain Capital Ventures has around $2 billion invested in a number of ventures mostly focusing on software, internet/mobile, and business services companies. Both investors feel that the startup has successfully launched its services, and they hope to reap benefits in a mutual manner.