, publicly addressed her failings and commitments around diversity and inclusion. She noted Ellevest doesn't have "a single Black person" on her leadership team.
At the time, there were only automated tools in mind. The financial-planner offering and private wealth management services would come later. "We had a double-digit percent of women, essentially at the time, shoot us the bird," Krawcheck said. "They said, 'For women? That sounds sexist, how dare you. I don't need my own thing to manage money, you know, for women.
Ellevest said it would use the funds to launch a financial-planning offering and a private-wealth service for clients with investable assets of at least $1 million. It's a delicate balance between deciding what "pulls at the heartstrings, as well as the purse strings," Genevieve O'Connor, an assistant professor of marketing at Fordham University's Gabelli School of Business, said in a recent phone interview.
The directive from management was to continue to get assets in the door from high-net worth individuals with the caveat of, "we'll figure the rest out later," the source said. Turnover had also become an issue for some teams, according to the source. In 2019, at least six software engineers left between February and August.
There was also a departure at the C-level as Lisa Stone, who joined in August 2017 as chief marketing officer before transitioning to chief strategy officer in April 2018 and leaving a year after, according to her LinkedIn. The company nabbed more funding in March 2019, raising $34.5 million in an extension of its Series A round.
Ellevest still lags behind both upstarts and traditional players. It's not profitable, a spokesperson said, declining to disclose burn rate or profitability figures. To be sure, many startups in the space have yet to turn a profit, as most tend to focus on growth. Ellevest's relatively small total assets versus the amount of money it's raised was one red flag cited by a few of the VCs.
An acquisition by traditional wealth managers seems unlikely due to Ellevest's positioning as a female-focused financial app.
Is it discriminating to say that with 80 mil under mgmt she is rather a failure?
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