California based risk alignment software firm Riskalyze has raised $20m in Series A funding led by FTV Capital. Financial planners use Riskalyze to assign risk scores to clients to help advisers recommend an appropriate investment strategy.
The equity growth investment gives fintech backer FTV Capital a “very minority” stake in the company and Brad Bernstein, managing partner at FTV Capital, will take one of five seats on the Riskalyze board of directors, said Aaron Klein, chief executive at Riskalyze. “We think we have just scratched the surface on the innovation we can do for advisers,” Mr. Klein said. “We decided to talk with a few prospective investors and raise the capital we need to fuel the next generation of innovation and growth.” About 15,000 people are using the Riskalyze platform to attain their “risk number,” according to the Sacramento-based firm.