Korean Robo-Advisor Fount Secures $33.4M Funding

Fount Secures $33.4 Million in Series C Funding

Fount, a South Korean fintech startup specializing in robo-advisory services, has successfully completed a $33.4 million Series C funding round. These newly acquired funds will be allocated towards the advancement of its machine learning platform and the expansion of its workforce.

Investment Details

Hana Financial Investment spearheaded the latest investment round, with significant participation from Nice Investment. Existing investors, including Smilegate Investment, KT Investment, Shinhan Capital, and the Korea Development Bank, also contributed to this funding cycle.

This Series C round elevates Fount’s total funding to approximately $58.5 million. The company is currently valued at an estimated $209 billion, as reported by CEO Youngbeen Kim to TechCrunch.

Future Development Plans

Over the next three years, Fount intends to dedicate roughly $85 million (100 billion won) to further enhance its technological capabilities. This commitment underscores the company’s focus on innovation within the robo-advisory space.

Company History and Milestones

Established in November 2015 by Youngbeen Kim, Fount initially launched its beta robo-advisor service in February 2016. Shortly after, in March 2016, renowned investor Jim Rogers became an advisor to Fount and invested in the company.

Following the attainment of necessary regulatory approvals in November 2017, Fount officially released its mobile application in June 2018.

Market Trends and Growth

The onset of the pandemic significantly accelerated the adoption of contactless investment services, including robo-advisors. Individuals increasingly sought to establish emergency funds and build investment portfolios for long-term financial security.

In January 2021, South Korea’s leading robo-advisor companies, including Fount, collectively surpassed $1 billion in assets under management (AUM), representing a substantial year-over-year increase of 402.9%, according to local media reports.

Current Performance and Target Audience

As of March 2021, Fount had exceeded $730 million in assets under management. The company primarily serves individuals aged 20-49, with millennials constituting approximately 66.8% of its user base.

Fount’s platform utilizes AI to manage investments on behalf of users. This is particularly beneficial for those who recognize the need to invest but lack extensive financial expertise.

BlueWhale Technology

The company’s AI-driven BlueWhale product meticulously analyzes over 52,000 instances of global economic data and market indicators. It then automatically generates a personalized and diversified investment portfolio, which is dynamically rebalanced as market conditions evolve.

B2B Partnerships and User Base

Fount currently provides its robo-advisor services to around 20 business-to-business (B2B) clients based in South Korea. These include prominent financial institutions such as Hana Financial Investment, Samsung Life Insurance, MetLife, and Hyundai Motor Securities.

The company is actively pursuing additional partnerships with other financial organizations. As of June 2021, Fount reported having 260,000 registered users.

Industry Projections

According to a Statista report cited by the company, global robo-advisor assets under management are forecasted to reach $2.8 trillion by 2025, increasing from $1.37 trillion in 2021.

The assets managed by South Korean robo-advisors are projected to grow to $25 billion in 2025, up from $8.36 billion in 2021.

Future Expansion Plans

When questioned about potential international expansion, CEO Kim indicated that the company’s current focus remains firmly on the domestic market and that there are no immediate plans for global outreach.