Ellevest is an online investment platform designed specifically for women. It was founded in 2014 by Sallie Krawcheck, who also serves as the CEO. Ellevest aims to close the gender investing gap by providing investment advice and portfolios tailored to women’s unique financial needs.
Who is the founder and CEO of Ellevest?
Sallie Krawcheck is the founder and CEO of Ellevest. She has a long history in the financial services industry, previously holding executive positions at major firms like Citigroup and Merrill Lynch.
In 2014, Krawcheck set out to create an investing platform designed specifically for women after realizing the unique challenges women face when it comes to money and investing. She has leveraged her industry experience and networks to secure funding, build a team, and scale Ellevest into one of the largest digital financial advisors for women.
What is Ellevest’s company history?
Here is a brief overview of Ellevest’s company history:
- 2014: Sallie Krawcheck founds Ellevest based on the insight that the financial industry does not adequately serve women.
- 2016: Ellevest launches its digital investment platform and raises $10 million in funding.
- 2017: Ellevest membership grows to over 15,000 clients.
- 2018: Ellevest raises $34.6 million in funding led by Rethink Impact, surpassing $100 million in assets under management.
- 2019: Ellevest launches banking services and raises an additional $33 million in funding.
- 2020: Ellevest hits $1 billion in assets under management.
- 2021: Ellevest membership grows to over 200,000 clients.
Throughout its history, Ellevest has focused on creating personalized, goal-based investment strategies designed for women’s salaries, lifespans, and career breaks like parental leave. The company has continued to innovate and expand its product offerings while maintaining its female-focused mission.
Who are Ellevest’s major investors?
Ellevest has raised over $100 million in funding from several high-profile investors, including:
Investor | Total Investment |
---|---|
Rethink Impact | $34.6 million |
Morningstar | $25 million |
Khosla Ventures | $16 million |
Greycroft | $10 million |
AXA Venture Partners | $9 million |
Rethink Impact, a venture capital fund focused on technology that promotes social progress, led Ellevest’s Series B funding round in 2018. Other major investors come from the financial services and venture capital sectors.
What products and services does Ellevest offer?
Ellevest offers the following key products and services:
Investment Management
- Diversified portfolios of low-cost ETFs tailored to women’s salary curves and lifetime earnings.
- Private wealth management services for high net worth individuals.
- Ellevest Impact portfolios that invest in companies with gender diverse leadership.
- Ellevest Elle 401(k) for employer-sponsored retirement plans.
Banking
- High yield savings accounts.
- Debit cards with no account fees.
Financial Planning
- Goal-based financial plans.
- One-on-one career coaching.
Private Coaching
- Private sessions focused on investing, career or business coaching, divorce, maternity leave planning, and other major life events.
The company’s core digital investment platform and tailored portfolios are enhanced by banking and personal advisory services to provide women complete and customized money management.
How does Ellevest’s business model work?
Ellevest generates revenue through the following business model:
- Asset-based advisory fees – Ellevest charges an annual advisory fee based on a percentage of assets under management. This accounts for the majority of revenue.
- Membership fees – Clients can choose monthly or annual membership plans that provide additional services like career coaching and private sessions.
- Banking services – Revenue from interest earned on cash deposits at their banking partner banks.
- Promotions – Commission made when users purchase financial products or services on the Ellevest platform.
The asset-based fee model combined with additional fee-based services allows Ellevest to generate revenue while providing services tailored to women’s financial needs and goals.
How much funding has Ellevest raised?
Ellevest has raised over $100 million in funding to date across several rounds:
Funding Round | Date | Amount Raised | Lead Investors |
---|---|---|---|
Seed | September 2015 | $2 million | Undisclosed |
Series A | January 2016 | $10 million | Greycroft, Rethink Impact |
Series B | July 2018 | $34.6 million | Rethink Impact |
Series C | January 2019 | $33 million | Morningstar |
The sizable funding rounds, led by prominent investment firms focused on fintech and social impact, have provided capital for Ellevest to scale its platform and member base quickly.
What is Ellevest’s valuation?
As a private company, Ellevest does not disclose its official valuation. However, according to PitchBook data, the company was valued at $350 million as of its Series C round in 2019.
At the time, this valuation positioned Ellevest as one of the most highly valued female-founded fintech startups in the U.S. The company’s valuation has likely increased since then as its assets under management and membership base continues scaling.
Who are Ellevest’s competitors?
Ellevest competes with both traditional financial advisors and digital financial platforms. Its main competitors include:
- Incumbent Advisors – Traditional financial advisors like Morgan Stanley, Merrill Lynch, and UBS.
- Robo-Advisors – Digital platforms like Betterment, Wealthfront, and SoFi.
- Female-Focused Firms – Financial firms targeting women like WorthFM and Caterham.
However, Ellevest differentiates itself by being the first completely female-focused robo-advisor. Its specialized focus on women’s financial needs combined with low-cost digital investing gives it a competitive edge.
Is Ellevest profitable?
No, Ellevest is currently not profitable. As a high-growth fintech startup, the company has focused on aggressively growing its assets under management and membership base versus maximizing profitability.
That said, Ellevest’s strong growth trajectory and business model position it well for potential profitability in the future. Once the company reaches sufficient scale, its asset-based fee structure could generate substantial revenue and cash flows.
What is the future outlook for Ellevest?
The future looks bright for Ellevest as demand for digital financial advisors continues growing rapidly, especially among female investors. Some positive signs for Ellevest include:
- Surpassing $1 billion in assets under management in 2020.
- Launching new premium membership tiers and financial products.
- Expanding its content and community to further engage its audience.
- Leveraging its vast dataset of women’s financial behavior and goals to enhance its platform.
If Ellevest maintains its female focus while continuing to innovate and improve its investing technology, it is well-positioned to capitalize on the huge market opportunity in women’s wealth management.
Conclusion
Ellevest was founded by Sallie Krawcheck in 2014 as an investing platform built specifically for women’s financial needs. It has raised over $100 million from leading investors and grown to over 200,000 members and $1 billion in assets under management.
Though not yet profitable, Ellevest’s business model scalability and focus on a large underserved market provides a promising outlook. The company’s commitment to its female-focused mission will continue differentiating it in the crowded digital investing space going forward.
With its rapid growth and innovative approach to women’s wealth management, Ellevest is poised to advance its leadership position and potentially pave the way for a new era of financial inclusion for women investors.