Ellevest, a nearly three-year-old, New York-based digital investment platform built for women and led by former Wall Street titan Sallie Krawcheck, has raised $34.6 million in fresh funding.
The round -- which was led by Rethink Impact, and includes participation from PSP Growth, Salesforce Ventures, CreditEase Fintech Investment Fund, LH Holdings, SK Impact Fund, Morningstar, Khosla Ventures, Mellody Hobson, Ulu Ventures, Contour Venture Partners and Astia Angels -- brings the company's total funding to $53.6 million.
Ellevest has plenty of competition from other, earlier digital wealth management platforms, including Betterment and Wealthfront, but it caters to women and thinks it can win marketshare by attracting female clients. Indeed, its tagline,"Invest like a woman," is a nod to the often different financial reality for women, who tend to live longer then men, as well as have different salary arcs.
That can include a career break for child-rearing, as Krawcheck said last year at a TechCrunch Disrupt event in New York, where she first took the wraps off the company. “Nobody is having that conversation,” said Krawcheck of the salary-earning years that new mothers can miss out on. “But obviously, as a woman, that can keep you from achieving your goals.”
Ellevest's management fee is .50 percent. There's no minimum balance. As part of its new funding, the company is introducing a new product -- Ellevest Ascent -- that introduces clients to real-live financial planners who will work with them on a number of areas, including tax planning, investments, retirement, and insurance.
The company had previously raised funding from numerous powerful individuals in the investing world, including Mohamed El-Erian, chief economic adviser at Allianz and the former CEO of PIMCO; Ajay Banga, president and CEO of MasterCard; and Brian Finn, former president of Credit Suisse First Boston, all of whom invested in the company's $10 million Series A round announced in May of last year.
Tennis great Serena Williams is also an early investor in the company.