Online financial planning service LearnVest has just raked in some major funds of its own.
The company announced in a press release this morning that it just closed a $28 million funding round led by Northwestern Mutual Capital. Previous LearnVest investor Accel Partners also contributed, bringing LearnVest’s total funding to over $72 million.
“It’s a very exciting time for us! The company has made incredible progress over the last few months,” LearnVest founder and CEO Alexa von Tobel told Betabeat in an email, noting that the company’s client base has grown over 248 percent in the past year alone. “This round is a testament to our continued momentum and gives us the opportunity to scale even more rapidly.”
Ms. von Tobel already has a number of plans in place for how LearnVest will allocate the new funding. She told Betabeat the funding would go towards investing in and developing LearnVest’s technology, bringing in new hires for the company’s Arizona Expert Hub, and expanding the LearnVest at Work channel. The company will also consider adding new members to its senior management team, which recently hired former Netflix-er David Lennie as SVP of Analytics.
Ms. von Tobel thinks people are so drawn to LearnVest because it focuses on easy-to-use, basic financial planning, as opposed to complicated investment strategies.
“The vast majority of firms focus only on the investment piece, but the average American (roughly speaking) runs $9,000 in credit card debt, has less than $55,000 in retirement savings, and has less than $1,000 in emergency savings,” she said in the press release. “… While firms fight over tackling the one percent, LearnVest is perfecting its software-designed LearnVest Program to help households across America optimize their finances efficiently, affordably and easily.”
We asked Ms. von Tobel why she believes LearnVest has been so successful.
“Our mission is to make financial planning affordable, accessible and even delightful — which is not typically a word used to describe financial services offerings!” Ms. von Tobel told Betabeat. “Behavioral psychology is at the heart of our program. Our Planners issue challenges that help tell people exactly what they need to do. It’s easy, and it’s straightforward. We’re committed to helping people make real progress.”
Update: An earlier version of this post stated that American Express Ventures participated in this round. In fact, American Express Ventures was not a participant in the most recent round of funding.