SigFig, the startup that offers financial education and money-management tools, has gained a further $15 million in venture funding.
SigFig has developed full set and suite of mobile apps (note: Android Tablet and Kindle Fire apps are still under development) to help you manage your investments. Instead of letting your money accumulate dust, SigFig helps you accrue capital gains by giving you investment advice.
All your investments show up in a dashboard, which is read-only, so you can’t make trades or move money. To keep your financial information safe, SigFig developed a 256–bit SSL encryption, the level that most banks and brokers use.
The service is geared toward inexperienced investors, who often can’t afford a financial adviser. The site is sprinkled with detailed visualizations and graphs that help you understand how your stocks are faring. In addition, you’ll receive a weekly recap in plain English with your winners, losers, and the news that will impact your portfolio.
SigFig isn’t the only money management startup on the market. Personal Capital is a major competitor run by PayPal’s former CEO Bill Harris, which recently closed a $25 million funding round. Harris said the purpose of Personal Capital, and other such startups, is to help people get a comprehensive view of their spending so they can make the right investments and save money in the short term.
Competition aside, the company says it’s experienced a strong year. In the past 12 months, the assets its customers are managing have more than doubled to $75 million. As it grows, the company is considering new revenue models and eking out partnerships. This year, it powered personal portfolio trackers for USA Today and CNN, so news readers can keep tabs on their money.
SigFig currently makes money by sending new customers to brokerage firms, which in turn compensate SigFig for new business referral.
Union Square Ventures and Bain Capital Ventures led the round with participation from existing investors DCM. Union Square Ventures’ partner John Buttrick will join the company’s board. Buttrick has led the firm’s investments in financial services startups like Lending Club.