Robo advisor startup Astor has raised $5 million to build an SEC-registered “AI advisor for everyone” that delivers automated voice and chat advice for a monthly subscription.
Astor was part of the San Francisco-based Y Combinator accelerator program and has secured additional funding from Monashees, Goodwater Capital, Gilgamesh Ventures, 468 Capital, among other investors. Founders Bruno Koba and Daniel Tulha both grew up in Brazil before moving to the U.S. Tulha was a software engineer at Robinhood and Stripe.
"We looked around and everyone we knew was investing on their own, with many treating their brokerage accounts like a casino," said Koba, co-founder and CEO of Astor. "Back home, even the most basic advisor gives you the sense that someone is paying attention to your money. Here, unless you're wealthy, nobody is."
Astor’s premium subscription charges $39.99 per month for access to unlimited voice calls and chat messages with an AI advisor. Its entry tier charges $14.99 monthly for the portfolio insights and unlimited chat feature but caps the AI voice advisor to 10 minutes per day.
Users link their brokerage accounts via Plaid to the Astor app, which analyzes their portfolio, financial goals, and market conditions to deliver investment recommendations. Per regulatory filings, Astor says it provides AI-generated non-discretionary investment advice focused on mutual funds, fixed income securities, equities, ETFs, and non-U.S. securities.
According to its press release, Astor serves thousands of users and more than $200 million in connected accounts. Astor’s most recent Form ADV from January does not list any assets under management. The regulatory filing also discloses limitations of AI and its accuracy.
“AI outputs may contain errors, inaccuracies, or incomplete analysis due to limitations in the underlying data or models. Market data and third-party information may be delayed, incorrect, or incomplete, which can affect the accuracy of results. AI systems may generate responses that appear authoritative but are subject to misinterpretation by clients if taken as investment advice,” reads Astor’s filing with the SEC.
Astor aims to “deliver personalized investment guidance to the millions of Americans who can't access traditional financial advice.” Other startups in the robo-advisor space include Anthony Pompliano’s ProCap Financial or RIA startups Range, and Era. Range was recently included among the 10 fastest growing firms on custodian platform Altruist, according to RIA Pulse data.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
