Covestor Rounds Up $12.75M in Series B Financing

Covestor recently gained $12.75 million worth in Series B funding, bringing their total capital investments to a total of $28 million worth of financing. This particular round was participated in by Union Square Ventures, Spark Capital, Amadeus Capital Partners, as well as Bay Partners.

The company’s communications director, Ms. Kalen Holliday, shares more about this recent investment round in this e-interview with Lead411:

Who are your competitors and how are you different from them?

We consider Fidelity, Schwab and TD Ameritrade to be our closest competitors.

We are smaller and more nimble than they are. Covestor focuses on matching our clients to emerging and established portfolio managers.

We also provide clients with a contact they can speak to or email … a single, responsive client adviser who is not compensated by selling particular products, so they can provide unbiased guidance.

What percentage of your marketing budget are spent on the following?

A. Advertising –
B. Social Media Marketing –
C. SEO –
D. PR –
E. Direct Marketing –
F. Other –

The percentage spent in various areas fluctuates. We also allocate a portion of our marketing dollars to our annual virtual conference – Next Invest – and live events.


What marketing tactic has given you the highest ROI? What percentage ROI do you get back on this?

We don’t disclose that information.

What do you plan to spend your new funding on? Product development? Marketing?

In the past 45 days we have added 6 staff members – including a chief investment officer, advisory board chair, controller, compliance analyst and developer. We are always working on improving our product and earlier this month launched a redesigned home page.

Last month we improved our product search system. We have several product enhancements in the pipeline. We have not made a final determination regarding marketing spend for the remainder of the year, but we sponsored an event this week (Xconomy’s XSITE conference), are running ads, and have a variety of other marketing initiatives in place or in the planning stage.

We are not seeking additional external marketing support and do not plan to hire an agency at this time.

If this is your first round of financing and you’re the CEO, how many hours did you put into working on getting your financing? Was that taking up the most of your day?

This is not our CEOs first round of financing. Asheesh Advani successfully closed a round of financing last year. He has also done financing for a startup he founded, Circle Lending, which he sold to Virgin Money.

How many employees do you have?

32 full time employees + additional consultants.

When were you founded?

Covestor was founded in 2007 and became a registered investment adviser in 2009.

How much did you revenue increase(if any) this year over last year?

We are privately held and do not disclose revenue.

Want to know more about their recent funding? You can check out their press release here.

About Christine Guinto

Christine Guinto is our part-time writer for the Lead411 Blog. She specializes in our funding news. You can contact her at christine [at] lead411.net. Christine Amos on Google+!