Young fintech firms serving advisors continue to attract investor support.
Planning software firm Advizr garnered $7 million in Series A funding from a number of industry firms, including Franklin Templeton and SEI.
And after raising $3.3 million just four months ago, enterprise software provider Trizic added another $2.5 million in investor capital.
"The cash fusion is simply a reminder that we are not just a fly-by startup," says Advizr CEO Hussain Zaidi.
Like many asset managers, Franklin Templeton is putting money into fintech firms in an effort to stay ahead of disruption brought about by digital innovation. It has already made a $15 million investment in an Indian fintech venture focused on lending.
“We continue to partner and invest in firms that possess the technology and abilities to enhance our distribution, investment performance, and product capabilities,” said Jenny Johnson, president and chief operating officer of Franklin Templeton, in a statement.
Zaidi says the funding will help further the firm's platform development and build out its sales team. The software's distribution will also get a boost; SEI noted it will incorporate Advizr into its own platform for planners.
"We are here for the long haul and ultimately are focused on enabling financial institutions to deliver more holistic advice," Zaidi adds. "It is a vote of confidence from these substantial organizations and we believe these new partnerships will resonate with other large financial institutions who are trying to solve similar problems."
For Trizic, the additional funding is another positive development in a steady stream of announcements for the four-year-old company since its CEO Drew Sievers took the reins last October.
In less than a year, in addition to the new capital, it has announced a series of deals, including agreements with John Hancock Financial and FIS Global, and hired Fidelity veteran Steve Lewczyk as its chief revenue officer.
Trizic's latest round of funding is led by Chicago-based PEAK6 Investments, which owns Apex Clearing, the go-to custodian for many robo advice platforms including Betterment.
The advisor fintech space this year has already seen a major investment, with Silicon Valley-based Addepar scoring $140 million in funding for its performance reporting platform.
"Technology is transforming the wealth management business,” stated George Ruhana, PEAK6 managing director.
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