Alexa von Tobel CEO and Founder of Learn Vest announced that they will be acquired by 160 year-old insurance and financial planning giant Northwestern Mutual. Driven by the mission to help every household budget better, save for big trips, maximize investments, or something in between, Learn Vest was launched in Sept 2009.
LearnVest raised a $4.5 million Series A round, a $19 million Series B round, a $16.5 million Series C round, and a $28 million Series D round since 2009. Investors include Accel Partners, Northwestern Mutual, American Express Ventures, Claritas Capital, Ed Mathias of The Carlyle Group, and Todd Ruppert of T. Rowe Price.
LearnVest is committed to advancing research on the attitudes and behaviors of personal finance that drive people’s decisions, purchasing habits and financial motivations. “Through our research we aim to develop the content, tools and financial planning resources that help transform our members’ relationship with money and set them on the path to a balanced financial life.”
While details of the deal remain undisclosed Alexa told Forbes in an interview:, “This propels the vision,” “They have tremendous scale. We are going to take the innovative technology that has made LearnVest so special and we are going to be able to help scale it rapidly to another 4.2 million households. Not overnight but very quickly.”
(image credit: Joseph)
Too funny The purchase price is wrong. At 300 new clients a month times 12 months times $19 is basically $68,000 a year or one planner. Good concept but not a money maker. Northwestern Mutual bought the hope of a better technology software product then they have now. That’s it. The tech and product talent for LearnVest quit soon after the acquisition. Top other people were run out. Same executive board poor management remains. They still want to be run as a startup.