(Bloomberg) -- Farther Finance Advisors LLC, a startup making technology for financial advisors, has raised $72 million in funding, betting that people want a more personal touch than they can get from robo advisors and artificial intelligence chatbots.
With the rise of automated investment services, some customers “missed out on the trust aspect of a role of a financial advisor,” said Taylor Matthews, chief executive officer and co-founder of Farther. “You want somebody to confide in.”
The funding round values the startup at $542 million and was co-led by Alphabet Inc.’s independent growth fund, CapitalG, and Viewpoint Ventures. Other investors in the company include Bessemer Venture Partners, Khosla Ventures and Lightspeed Venture Partners.
Farther’s software helps advisors with administrative tasks and marketing support. It has offerings for financial planning, compliance assistance and operations management.
Jesse Wedler, general partner at CapitalG, said there’s an opportunity for startups to challenge traditional advisory firms. The industry needs “a modern digital experience” to attract customers, he said. Farther’s software can also improve efficiency for financial advisors because it allows them to spend more time building relationships, and “automates the part of the job you don’t like.”
Farther manages more than $5 billion in assets for its 5,000 clients, the company said. The startup has now raised $118 million to date.
To contact the author of this story:
Katie Roof in Los Angeles at [email protected]
