Investors Snap Up Online Financial Advisers
By Telis Demos
Silicon Valley’s latest passion: roboadvisers.
Investors are pouring hundreds of millions of dollars into these young companies that provide automated online financial guidance.
The startups offer portfolio-management tools for less than what traditional brokers or advisers charge. Although the firms are still startups and have yet to generate substantial revenue or profit, they are fetching lofty valuations as investors view them more like Internet companies than as conventional financial-services firms. That has some concerned about unrealistic expectations for earnings down the road.