As Banks Build Out Their Own Robo-Advisers, Funding Falls for Startups
- Financing plunged 49% in third quarter from prior period
- Goldman, JPMorgan and Morgan Stanley enhance tech offerings
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As the biggest banks continue spending millions of dollars on financial technology to transform decades-old wealth-management offerings, funding declined in the third quarter for startups that have sought to transform the industry.
Financing to VC-backed wealth-tech startups slumped 49 percent to $272 million from the second quarter, which had seen a better-than threefold surge in deals, according to a report issued Wednesday by CB Insights. The most recent period compares with the first quarter’s total of $292 million, the report shows.