Reports suggest that following Blackrock's acquisition of FutureAdvisor, the race to acquire robo-advisors is becoming more about speed and price than about justifying the technological and financial benefit, as those are obvious. The report also notes that a number of hedge funds have been buying up robo-advisors, including one called Betterment which has raised $120 million in venture capital funding.
Reports suggest that following Blackrock's acquisition of FutureAdvisor, the race to acquire robo-advisors is becoming more about speed and price than about justifying the technological and financial benefit, as those are obvious. Two reasons have been attributed to the trend of robo-advisor acquisitions, "acquiring a robo platform is a quick way for a firm to enter the digital-advice market, and if the right one is chosen at the right time, it comes with a more reasonable price tag compared to the costs of building an automated investment service from the ground up"