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Korean robo-advisor Fount bags $33.4M to advance its AI-based platform – FiratNews

Korean robo-advisor Fount bags $33.4M to advance its AI-based platform – TechCrunch

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Fount, a robo-advisor startup in South Korea, has raised a $33.4 million Sequence C spherical to beef up its machine learning-based platform growth and rent employees.  

The newest spherical was led by Hana Monetary Funding, together with Good Funding. Returning backers Smilegate Funding, KT Funding, Shinhan Capital and Korea Improvement Financial institution additionally participated.

The Sequence C brings its whole funding to about $58.5 million, and the corporate’s valuation is now estimated at $209 billion, CEO Youngbeen Kim advised FiratNews. 

The corporate will proceed to spend money on its know-how growth for the subsequent three years, about an extra $85 million (100 billion received), Kim added.

Based in November 2015 by Kim, Fount launched its first beta robo-advisor service in February 2016. The next month, Jim Rogers, an advisor of Fount, invested within the firm.

After gaining regulatory approvals for advising funding in November 2017, Fount launched its cellular app in June 2018. 

The pandemic spurred the pattern that individuals arrange an emergency fund or create an funding portfolio to develop their wealth and save for retirement by means of contactless funding companies comparable to robo-advisers. South Korea’s three robo-adviser startups, together with Fount, exceeded a complete of $1 billion in property underneath administration in January 2021, up 402.9% yr on yr, based mostly on an area media report.

Fount surpassed $730 million property underneath administration as of March 2021. As per its press launch, its core market is individuals aged 20-49, together with about 66.8% of millennials. 

Its AI-powered platform invests on customers’ behalf through the use of algorithms and knowledge for individuals who know they should make investments cash to develop their wealth however don’t know a lot about investing. 

Fount’s AI-based BlueWhale product analyzes greater than 52,000 circumstances of worldwide financial knowledge and market indices and routinely proposes a custom-made and diversified portfolio that it will probably later rebalance as obligatory. 

The corporate presents its robo-advisor service to roughly 20 South Korea-based B2B shoppers, together with the lead investor Hana Monetary funding, Samsung Life Insurance coverage, MetLife and Hyundai Motor Securities. The corporate is in talks with further monetary firms for having partnerships. It additionally claims that it has 260,000 registered customers as of June 2021. 

International robo-advisors property underneath administration are projected to extend to $2.8 trillion in 2025 from $1.37 trillion in 2021, based mostly on its assertion citing Statista report. South Korean robo-advisors’ property underneath administration are anticipated to develop as much as $25 billion in 2025 from $8.36 billion in 2021. 

When requested about abroad expansions, Kim stated it focuses on the house market now and doesn’t have a concrete plan for international penetration.

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