Ethic, an asset management platform for sustainable investment portfolios, has collected $13m in its Series A round.
Nyca Partners, a financial services-focused venture capital firm, led the round. Other investments came from diversified financial services company Fidelity Investments and Ashton Kutcher’s venture firm Sound Ventures.
Also joining the round were previous Ethic backers ThirdStream Partners, Urban Innovation Fund and Kapor Capital.
With the new equity line, Ethic is looking to expand its engineering, client service and business development teams.
Founded in 2015, the company helps wealth advisors to engage with their clients on issues such as personalised portfolio construction, transparent impact reporting, and integrated education. In partnering with Ethic, it claims wealth advisors will be better positioned to acquire and retain clients.
Advisors can use the platform to create return-driven, tax-efficient sustainable equity portfolios, either based on popular thematics, or a custom suite of allocations.
Ethic CEO and co-founder Doug Scott said, “The last big shift in wealth management was from active to passive investing. We are now in the midst of the next revolution in wealth management, characterized by a shift to personalized investing, which we believe will disrupt the traditional model of financial product creation.”
Prior to this round, the WealthTech nabbed $6.8m from ThirdStream Partners, Nyca Partners, Kapor Capital and the Urban Innovation Fund.
Last year, Nyca Partners participated in the $16m funding round of mobile banking and credit card startup Zero Financial. The company replaces a consumer’s checking, savings, debit, and credit cards with a mobile-based banking app.
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