The wealth management technology provider SigFig has raised $40 million in equity and other financing from a number of large financial and venture capital firms so that it can expand its business.
San Francisco-based SigFig develops wealth management technology that financial institutions can tailor to suit their corporate strategies and their clients' needs. It plans to use the funds to add staff, expand its technology platform and seek business with more financial institutions.
It raised $33 million in equity financing led by Eaton Vance; other investors included New York Life, Santander InnoVentures, UBS and the venture capital firms Bain Capital Ventures, DCM Ventures, Nyca Partners and Union Square Ventures, SigFig said in a news release Tuesday. Comerica Bank is providing a $7 million credit facility, the release said.
"Our business-to-business strategy of partnering with some of the largest financial services companies in the world will help us rapidly scale and achieve our mission of giving all investors, large and small, access to high-quality, unbiased financial advice," SigFig Chief Executive Mike Sha said in the release.
Santander InnoVentures, the fintech venture capital arm of Santander Group, said it decided to make its first investment in the investment advisory space because of the heavy demand for affordable, easily accessible financial guidance. Mariano Belinky, managing partner at InnoVentures, said in a separate news release that its vision extends beyond traditional wealth management to "embracing the challenge of bringing an understanding of financial well-being to every individual."
SigFig, which was founded in 2007, says it has raised a total of $70 million in financing.