Online broker Motif Investing is closing its doors about 10 years after it opened them in Silicon Valley. The fintech firm, which offered advisors and investors build-your-own portfolio platforms, sent a note to users late Friday about its closure.
“At this time, we’ve made the decision to cease operations and transfer your account to Folio Investing,” it said in a statement shared on Twitter.
“First major investing #fintech to hit the dust?” asked Scott Salaske, CEO of the investment and advisory firm Firstmetric, on Twitter.
“One of the largest in terms of funds raised in my recent memory, $126M according to @crunchbase,” replied Bill Winterberg, CFP, a fintech consultant.
Motif is led by Hardeep Walia, a former Microsoft executive. (Requests for a comment on the closure were not returned.)
“I think the Friday night announcement was probably by design. It’s a bummer though, Motif’s offering was very well done and had a unique spot in the investing space. It was/is a very good service,” tweeted Kip McCauley, an investor, minority owner of the New York Knicks and a microblogger.
At least one advisor said the firm didn’t get the notice sent to investors: “Heres a fun fact – I’m on their advisor platform and found out about it by seeing this tweet. No email sent to the advisor community. No idea if my clients were notified,” explained Bill Nelson of Pacesetter Planning on Twitter, in response to McCauley’s tweet.
The movement of accounts is set for the evening of May 20, Motif said in its email, which noted that Folio offers fractional shares and portfolio customization options.
Folio CEO’s Views
“I have always had great respect for Motif and what they built and offered their investors,” said Folio CEO Steve Wallman in a statement sent by email to ThinkAdvisor.
“Bottom line, we are sad that Motif is closing its doors, but are grateful to have the opportunity to serve their clients and perhaps even offer them more than what Motif was able to provide,” explained the former SEC commissioner.