Personal Capital struggles with Series E: sources

Personal Capital is expected to wrap up funding for a Series E in a few months. But it’s not clear how well those discussions are going.

The online wealth advisor is seeking to raise from $50 million to $75 million and bids were due about two weeks ago, two sources familiar with the situation said. Evercore Partners is advising, Buyouts reported in December. It’s unclear who the potential investors are, but Personal Capital is targeting strategics and late-stage venture-capital firms, the sources said.

Personal Capital has been fundraising since the summer and is struggling with its attempt to raise a Series E, said four different sources, including some executives who had been pitched on the deal. The robo-advisor got “ahead of itself” with its valuation, one of the sources, a banker, said. “They’re trying to figure out what to do,” the banking source said.

Personal Capital is considering doing a down round, the sources said. The digital wealth management firm raised $50 million with its Series D round led by Corsair Capital in October 2014. The firm’s D round was completed at a $250 million post-money valuation. “A down round means the pre-money would be below this,” a different banker said.

Other sources disagree. Personal Capital’s talks with investors have been “positive,” one of the sources said, while another said the firm will likely be doing an up round.

A third source said Personal Capital’s business is “doing quite well.”

“People have struggled on the price, but [Personal Capital’s] business is really good,” this person said. “They will get there.”

With offices in San Francisco and Redwood City, California, and Denver, Personal Capital offers an online wealth management platform, including apps, for clients to manage their money. The robo-advisor said earlier this month it hit $2 billion in assets under management.

Personal Capital raised $109 million in funding through six rounds. Investors include Corsair, BBVA Ventures, BlackrockCrosslink Capital, Institutional Venture PartnersUSAA and Venrock, according to CrunchBase, which tracks privately backed companies.

“Corsair is enthusiastic about its investment in Personal Capital,” a spokesman for the firm said, declining to comment further.

Blackrock, USAA, BBVA, Crosslink, IVP and Venrock could not immediately be reached for comment.

Evercore and Blackrock declined comment.

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