The New York startup intended to raise $8 million, until SoftBank demanded a bigger slice of the pie and it saw more need to invest in a bigger future
Brooke’s Note: When brokers crawled onto land from the ocean, they shed their tails, grew feet and became RIAs. It was all good — except for one thing. They left behind sales systems and sales culture that was helpful in at least one regard; it produced asset growth. Replacing sales without much selling is something RIAs have done very well, all things considered. The void gets closed by referrals. That said, capturing referrals is a passive process. So it is perhaps not surprising that entrepreneurs and venture capitalists seem to love the visions of companies like SmartAsset and Zoe Financial. They are essentially digitizing steak dinners and conversations on golf greens. They may also keep RIAs from crawling back into the ocean and spell trouble for deep-sea-dwelling brokers.
SoftBank Group is leading a group throwing $10 million of hard currency at a New York City startup that sells RIAs leads they only pay for after dollars land in their accounts.
The Tokyo-based banking conglomerate now has a stake in Zoe Financial, a venture that vacuums up investors on Google then sells them to fiduciary advisor. Brokers need not apply. SoftBank has VC dollars burning a hole in its pocket after designating $100 billion for its Vision Fund. For perspective, the entire venture capital complex in the United Staes invested $54 billion…