The New York firm gets $65 million six months after it raised $45 million by going straight at the $5 trillion of high-net-worth assets managed mostly by big RIAs with software that listens to RIAs but does all their work.
Brooke's Note: The youngest founders in the history of the RIA business have now achieved the highest valuation at the fastest rate of any firm by leveraging their mostly ambitious expectations. The two young men, 20 and 21, did fall way, way short of RIA AUM that their founders assured was all but in the bag. That may not be worth too much discussion, if it was simply a case of youthful exuberance. The impossible can take a little while. Disruption, like faith, only exists in the presence of vast reservoirs of doubt. What I continue to like about Vise is the youthful belief that its primary mission is to put AI into hands of RIAs, unlike other investment automation projects that went straight to retail investors and then revamped for advisors. Nor is it a TAMP designed for IBD reps that's being remodeled for RIAs. Needless to say, the latter take of mine is very glass-half-full. We really have little assurance that artificial intelligence is ripe for this application of RIA automation, or that these guys really get the infinite nuances of doing business with show-me RIAs. Or, that AssetMark, SEI, Vestmark, Orion, Envestnet, Betterment or any other such players won't provide wholly adequate solutions before Vise can ever get established and spend all that cash Silicon Valley is showering on them.
VIse AI failed to reach the $1 billion of AUA from RIAs that it projected last year -- never mind the $10 billion it said was gurgling through its pipeline, which also failed to materialize.