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Robo-advisor blooom Reaches $300 Million in Assets


Mirror, mirror, on the wall. Which robo-advisor is the fastest growing one of all?

According to monthly SEC filings, no independent robo-advisor had made it to $300 million in assets managed faster than blooom. That the company reached this milestone 20 months after launching—and with less than a fifth of the outside capital raised by its competitors—is all the more impressive. “Most of our growth has been organic, through word of mouth, because our clients—everyday, regular Americans in all 50 states—see how meaningfully we can improve their 401(k)s, cut their hidden fees, and potentially add years in retirement,” said bloom CEO Chris Costello, co-founder.


From left: Co-founders Chris Costello and Randy AufDerHeide demonstrated the blooom platform at FinovateFall 2014 in New York.

Founded in 2013 and headquartered in Overland Park, Kansas, blooom demonstrated its technology at FinovateFall 2014, picking up a Best of Show award. The company distinguishes itself from the rest of the robo-advisor pack by focusing on helping investors manage their 401(k)s and other employee-sponsored, defined-contribution pension plans. The platform makes suggestions on asset allocation and portfolio building and steers investors toward lower-cost index funds when practical. For subscribers, the service automatically reviews the portfolio every 90 days to make sure allocations remain in balance and will reduce stock exposure as investors near retirement age. The platform provides free portfolio analysis, and charges $5 a month for accounts under $20,000; $19 a month for accounts between $20,000 and $49,999, and $99 a month for accounts above $500,000.

The company has raised $4 million in funding and includes QED Investors, Commerce Ventures, DST Systems, Gibraltar Ventures, Hyde Park Venture Partners, and UMB Banks among its investors. Named “one in a million” in the Kauffamn Foundation Startup competition last fall, blooom was honored by Employee Benefits News as a Top 50 Benefit Technology Innovator in April. And in March, NPR profiled the robo-advisor as part of a feature on how to help millennials plan for their financial futures when dealing with student debt. Read our Finovate Debut feature on blooom.

Post updated to reflect Blooom’s new pricing.