Women-Focused Financial Platform Seeks to Revolutionize Investing
In a significant move towards promoting financial equality, Ellevest, a digital investment platform specifically designed for women, has secured an additional $33 million in funding. This latest round of investment was led by Rethink Impact and PSP Growth, with notable new investors joining the fold, including Melinda Gates’s investment fund Pivotal Ventures; PayPal; Wynn Resorts co-founder Elaine Wynn; former Google and Alphabet chairman Eric Schmidt; former top aide to President Obama, Valerie Jarrett; Gingerbread Capital, founded by Linnea Roberts; and Mastercard.
Founding Story
Founded by Sallie Krawcheck, a former Citigroup CFO, Ellevest was launched in May 2016 at TechCrunch Disrupt NY. The platform aimed to address the unique financial needs of women, who often face distinct challenges in their personal and professional lives. Women’s salaries, for instance, tend to follow a different arc over time compared to men, and they also have different approaches to investing.
Key Features
Ellevest has developed several key features that cater specifically to the needs of its female clients. These include:
- Personalized Investment Portfolios: Ellevest offers customized investment portfolios that take into account individual financial goals and risk tolerance.
- Financial Education: The platform provides a range of educational resources, including articles, webinars, and one-on-one coaching sessions to help women better understand their finances.
- Premium Service: This offering connects clients with executive coaches and certified financial planners to provide personalized guidance.
Expansion Plans
With this latest funding, Ellevest plans to accelerate its growth by:
- Investing in Technology: The platform will continue to develop and enhance its investment tools and algorithms to better serve its clients.
- Expanding Product Categories: Ellevest aims to introduce new products and services that cater to the evolving needs of its female clients.
- Financial Education Offerings: The company will invest in developing more comprehensive financial education resources for its clients.
Client Base
As of now, Ellevest has clients across all 50 states and Puerto Rico, with an average age of 34. While the exact number of customers remains undisclosed, the platform’s growth is evident in its increasing presence and influence.
Support from Key Stakeholders
The latest funding round has garnered significant support from prominent investors and stakeholders, including:
- Melinda Gates: Co-founder of the Bill and Melinda Gates Foundation, who sees Ellevest as a pioneering effort towards financial equality.
- Valerie Jarrett: Former top aide to President Obama and co-chair of the United States of Women, who believes in the importance of women’s financial empowerment.
Conclusion
Ellevest’s commitment to addressing the unique financial needs of women has resonated with investors and clients alike. With this latest funding, the platform is poised to further accelerate its growth and make a significant impact on promoting financial equality.
