Riskalyze Raises $20 Million Growth Equity Investment to Accelerate Risk Number and Robo Platforms for Independent Financial Advisors

Rapidly growing digital partner to advisors announces first institutional round led by FTV Capital

Sacramento, CA (October 31st, 2016) – Riskalyze, the company that empowers thousands of advisors to align each client's investments with their Risk Number®, today announced a $20 million minority growth equity investment led by FTV Capital. This is the first outside institutional round for the company and will be used to bolster and expand its line of digital offerings which already includes the company’s flagship Riskalyze product, the Autopilot robo platform, and Compliance Cloud big data analytics. As part of the transaction, FTV Capital managing partner Brad Bernstein will join the company’s board of directors.

"We're excited to expand our impact on the industry and the 240,000 advisors we built Riskalyze to serve," said Aaron Klein, CEO at Riskalyze. "We founded Riskalyze on a mission to align the world's investments with each investor's Risk Number, and empower anyone to invest with confidence. We're proud to have a great firm like FTV joining us on that journey."

Riskalyze has grown quickly as advisors have fully embraced the digital age, and now employs more than 106 Riskalyzers from its offices in Sacramento and Atlanta. The company expects to aggressively hire new employees, especially on its product and engineering teams.

“Frequent episodes of market volatility since the financial crisis have reinforced the imperative for investment advisors to have a deep understanding of their clients’ risk tolerance,” said Brad Bernstein, managing partner at FTV Capital. “The Riskalyze team has successfully leveraged technology to build a unique digital offering that is significantly improving the advisor’s ability to quantitatively measure a client’s risk profile and build a portfolio that accurately reflects that profile. The regulatory environment, and most recently the DOL fiduciary rule, is providing further tailwinds to the rapidly growing demand for Riskalyze’s digital platform. The company’s achievements are reflected in consistently high growth and strong operating metrics, as well as industry accolades including the Wealth Management Industry Award, Fast Company Top 10 Most Innovative Companies in Finance and the Forbes Fintech 50.”

"We are passionate about providing investors with a platform that gives them confidence and helps reduce fear often associated with investing, and today's announcement propels us even faster on the path to supporting every investor," said Mike McDaniel, co-founder and chief investment officer at Riskalyze. "Everything we do is focused on equipping great investment advisors to do the right thing for their clients, and FTV's track record in helping to build great companies that serve advisors will be an important asset along the way."

Financial Technology Partners LP and FTP Securities LLC (together, “FT Partners”), acted as sole strategic advisor to Riskalyze in this transaction.

For more information about how Riskalyze will put this new capital to work helping our advisor partners, or to speak to any principal involved in the transaction, please contact riskalyze@ficommpartners.com.

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About Riskalyze
Riskalyze is the company that invented the Risk Number®, which powers the world’s first Risk Alignment Platform, empowers advisors to execute the digital advice business model with Autopilot and enables compliance teams to spot issues, develop real-time visibility and navigate changing fiduciary rules with Compliance Cloud. Advisors, broker-dealers, RIAs, asset managers, custodians and clearing firms use Riskalyze to align the world’s investments with each investor’s Risk Number. To learn more, visit www.riskalyze.com.

About FTV Capital
FTV Capital is a growth equity investment firm that has raised over $2.7 billion to invest in high-growth companies offering a range of innovative solutions in three sectors: enterprise technology & services, financial services, and payments & transaction processing. FTV’s experienced team leverages its domain expertise and proven track record in these sectors to help motivated management teams accelerate growth. FTV also provides companies with access to its Global Partner Network, a group of the world’s leading enterprises and executives who have helped FTV portfolio companies for nearly two decades. Founded in 1998, FTV Capital has invested in 93 portfolio companies, including companies such as Aspire Financial Services, ETF Securities, Financial Engines (IPO, March 2010), IndexIQ (acquired by New York Life Investment Management), InvestCloud, PowerShares Capital Management (acquired by Invesco), Swan Global Investments, True Potential and VelocityShares (acquired by Janus Capital). FTV Capital has offices in San Francisco and New York. For more information, visit www.ftvcapital.com.

Media Contacts:

FiComm Partners (for Riskalyze)
Jason Lahita

Tenor Communications (for FTV Capital)
Laura Cruz