Woman-focused robo-advisor SheCapital has ceased operations.
“We did not have the profits I hoped to have had,” said founder Tina Powell in an interview with ThinkAdvisor.
“The fact that other platforms have launched is very positive,” she said. “They have significant backing and an existing community to build on. This doesn’t guarantee success, but could give them a running start that SheCapital could have benefited from.”
Powell helped launch SheCapital about a year ago. Its roughly $1.3 million of client assets are being moved to Beacon Wealth Management, where she is director of business management.
“We will continue to serve women [at Beacon] – and I am proud of work we did at SheCapital,” the executive said. “It was a great learning experience and helped put female-oriented initiatives in front of the public.”
Earlier this month, robo-platform Betterment said its asset level had topped $5 billion.
That news came about two months after Sallie Krawcheck, head of Ellevate Network, said she had started Ellevest, a new digital investment platform for women that received some $10 million in funding last fall.
According to Cerulli Associates’ analysis in 2015, robo-advisors – which rely on asset allocation models and algorithms to invest client portfolios, typically in exchange-traded funds – could see their assets under management jump 2,500% by 2020 to nearly $490 billion.
“Ellevate Network has a community to tap into vs. having to build it” from scratch, Powell stated. “Having that community, that watering hole, already there is a tremendous advantage.”
She also pointed to a similar situation at WorthFM, a robo-advisor started by Amanda Steinberg, who began operating the DailyWorth website for women in 2009.
“I’m reluctant to draw any conclusions from SheCapital,” explained Powell. “I looked at the data and said ‘Unless a fairy godmother, or a company, comes in with an [injection] of capital, I will need to move on.’ The numbers are absolute, … it’s a numbers-based decision.”
Websites like Betterment that want to serve female investors “have to build a client experience to serve them effectively and give them what they want in terms of their online experience and other solutions,” she said.
— Check out Who Likes Robo-Advisors? Not These People on ThinkAdvisor.