Asset management giant BlackRock is acquiring financial services startup FutureAdvisor. Founded in 2010, FutureAdvisor offers an automated investment service where so-called robo-advisers (or, you know, software) help clients manage longterm investment goals.
The startup has raised a little over $20 million since launch. But Fortune says the terms of the acquisition deal have not been disclosed.
The startup says it decided to merge with BlackRock as the giant's resources will help allow it to build new features faster "to continue to deliver on our promise of improving the financial lives of average Americans."
"There will be no change in the mission of the FutureAdvisor you trust today," the company's cofounder and chief executive Bo Lu wrote in a blog post. "Our brand, our culture, and our people will work to serve you and improve your digital experience every day just as we all did before the acquisition."
FutureAdvisor is not the only startup to offer "robo-advisers" to help clients invest money. Wealthfront and Betterment are two major young competitors, while giant Charles Schwab launched its own service to compete with the upstarts earlier this year.
As the fintech space has gotten increasingly crowded, financial services institutions have moved to create their own copycats to fend off competitors (like Charles Schwab did), partner with the services (like Fidelity has done with Betterment), or acquire the upstarts (like BlackRock has now done). All eyes are on who might be next.
