Ethic Inc., a U.S. asset management platform that powers sustainable investment portfolios, announced on Thursday it secured $13 million through its Series A funding round, which was led by Nyca Partners with participation from Sound Ventures, Fidelity Investments, ThirdStream Partners, Urban Innovation Fund and Kapor Capital.
Founded in 2015, Ethic claims that it empowers wealth advisors to engage with their clients on the issues important to them through personalized portfolio construction, transparent impact reporting and integrated education.
“By partnering with Ethic, wealth advisors are better positioned to acquire and retain clients, as demonstrated by the rapid growth in Ethic’s assets under management.”
The company also revealed that it closed on $6.8 million in funding in October 2018; this latest round will support its continued growth in the registered investment advisor (RIA) and wealth management space through expansion of its engineering, client service, and business development teams. Speaking about the investment round, Hans Morris, managing partner of Nyca Partners, stated:
“That’s what we think is the most striking attribute of Ethic: we believe it is pioneering the future of equities investing. Every investor can create an individual portfolio customized to the environmental, social and governance factors that matter to them most. The effects can be enormous as Ethic is effectively powering a personalized ETF for everyone. We are very excited about Ethic’s vision and management team.”
Doug Scott, CEO and Co-Founder at Ethic, then added:
“The last big shift in wealth management was from active to passive investing. We are now in the midst of the next revolution in wealth management, characterized by a shift to personalized investing, which we believe will disrupt the traditional model of financial product creation.”