MyCFO Inc., a wealth-advisory firm for high-net-worth individuals, recently secured $45 million in its third round of venture capital financing. The Mountain View, Calif.-based issuer plans to use the proceeds to grow its team of financial advisors and further scale its online technology platform.
Northern Trust Corp. led the Series C round. The investor was brought in on the deal in part due to an existing business partnership whereby MyCFO steers wealthy clients toNorthern Trust for their banking needs. Even though the two companies are in direct competition with some aspects of their businesses, Rick Waddell, executive vice president of wealth management for Northern Trust, said, “We have a good relationship with them. We agreed to disagree. We know they have investment capabilities, but we compliment each other more than we compete with each other.”
Art Shaw, chief executive of MyCFO, added that the only real competition between the two firms is in the home office space.
Other first-time investors included Amerindo Investment Advisors, Presidio Venture Partners and RSA Ventures. Existing backers also signed on, including Kleiner Perkins Caufield & Byers, The Barksdale Group, company founder Jim Clark and other private investors.
MyCFO provides each of its clients with a dedicated client service director, who is supported by a team of professionals who work together to provide comprehensive wealth-management strategies. The firm also has an online component where clients can view their financial data. MyCFO’s services include income tax planning and compliance, investment advisory, estate and trust, risk management and insurance, philanthrop and expense management and financial reporting.
At year-end 2000, myCFO served 310 clients nationwide who represented a total net worth of $44 billion. The company is not yet profitable, but Shaw does expect this round of funding to eventually bring myCFO to cash-flow positive status.
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