NextCapital raises $16M in series B

Written by Andreas Rekdal
December 17, 2015Updated: October 6, 2022

Chicago-based digital investment advice firm Next Capital raised $16 million in a series B funding round led by AllianceBernstein, Manulife, and Route 66 Ventures.

“This infusion of new capital will accelerate our partners' entrance into the digital advice marketplace — both inside the 401(k) plan and out," said NextCapital CEO John Patterson in a statement.

NextCapital, founded in 1997, connects with clients’ investment accounts to offer digital investment advice and personal investment benchmarking tools that help customers understand how their investments are doing relative to comparable assets. Its proprietary software can compile and analyze information from brokerage accounts at most of America’s most popular investment brokers including Charles Schwab, Vanguard, and Merril Lynch, and is compatible with 401(k), IRA, and retail brokerage accounts.

“[D]igital advice is a game changer for the multi-trillion dollar retirement space. NextCapital's enterprise offering provides institutions speed-to-market and control over the user experience and financial methodology -- the best of both worlds," Benjamin Britt of Route 66 Ventures said in the statement. 

This funding comes on top of a $6 million series A from 2014, where investors included some of the company’s biggest clients like Transamerica Ventures Fund and Russel Investments, as well as FinTech Collective, Kelvingrove Ventures, and the Vermont Seed Capital Fund.

According to the Chicago Tribune, the company will use some of the money to hire engineers and financial research staffers.

Photo via Shutterstock.

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