Blooom

Blooom, often styled as “blooom,” was a United States-focused online registered investment adviser founded in 2013 by Chris Costello. The company developed a digital retirement-investment service intended to help individuals manage accounts that were often held through employer-sponsored plans or individual retirement arrangements. Its service covered accounts such as individual retirement accounts (IRAs) and workplace retirement plans including 401(k), 403(b), and Thrift Savings Plan (TSP) accounts. The business was positioned around making professional portfolio management available through an online interface. Rather than operating as a conventional investment-fund brand or bank, Blooom provided advisory and account-management services for retirement savers. Its model addressed a practical problem in the United States retirement system: many workers accumulate assets in employer plans but receive limited individualized investment guidance. Blooom’s service was designed to analyze eligible retirement accounts and manage allocations within the choices available in those plans. Blooom attracted early institutional and startup support. In September 2015, the nonprofit organization LaunchKC awarded it a $50,000 grant. The company then completed a $4 million Series A financing round in October 2015, led by QED Investors, with participation from DST Systems, Commerce Ventures, Hyde Park Venture Partners, and UMB Financial Corporation. At that stage, Blooom reported more than $110 million in assets under management. In November 2015, it won the Ewing Marion Kauffman Foundation’s “One in a Million” competition and received a related $10,000 award. A $9.15 million Series B financing round followed in early 2017, by which time the company reported approximately $500 million in assets under management. During April 2017, Blooom announced staff layoffs and a strategic refocus away from business-to-business distribution toward a business-to-client model. The change was accompanied by the resignation of President Greg Smith. Blooom’s reported scale continued to increase: Securities and Exchange Commission Form ADV filings showed assets under management above $1 billion by September 28, 2017, and the company reported $5 billion in assets under management in January 2021. Leadership also changed as the company grew. In February 2018, Matt Burgener replaced co-founder Chris Costello as chief executive officer. Blooom was subsequently acquired by Morgan Stanley in December 2022. Following the acquisition, the Blooom business ceased operating as an independent service. It is therefore a defunct digital wealth-management and retirement-advisory brand rather than an active standalone asset manager.

Blooom was established in 2013 by Chris Costello as a digital registered investment adviser focused on retirement accounts. Its service targeted both individual retirement accounts and employer-sponsored plans, including 401(k), 403(b), and TSP accounts. The company’s central proposition was to provide online investment management for retirement savers, particularly participants who might have access to a workplace plan but lack personalized portfolio guidance. The company received early recognition and funding in 2015. LaunchKC awarded Blooom a $50,000 grant in September. In October, Blooom raised a $4 million Series A round led by QED Investors, joined by DST Systems, Commerce Ventures, Hyde Park Venture Partners, and UMB Financial Corporation. The company reported more than $110 million in assets under management at that point. Later in 2015, Blooom won the Ewing Marion Kauffman Foundation’s “One in a Million” competition and received a $10,000 award. Blooom raised a further $9.15 million in a Series B financing round in early 2017 and reported approximately $500 million in assets under management. That year brought a strategic adjustment: the company announced layoffs and moved its emphasis away from business-to-business activity toward a business-to-client model. President Greg Smith resigned during the April 2017 transition. Despite the restructuring, regulatory filings indicated continued growth, with Blooom’s SEC Form ADV filings showing more than $1 billion in assets under management by September 28, 2017. In February 2018, Matt Burgener succeeded co-founder Chris Costello as chief executive officer. Blooom later reported managing $5 billion in assets in January 2021, reflecting the expansion of its retirement-advisory platform. The company was acquired by Morgan Stanley in December 2022. After the acquisition, Blooom ceased operation, ending the brand’s existence as an independent online retirement-advisory service.

• 2022

  Acquisition and closure

  [1]Blooomen.wikipedia.org

  Morgan Stanley purchased Blooom in December, and the service subsequently ceased operation.

• 2021

  Reported assets reach $5 billion

  [1]Blooomen.wikipedia.org

  Blooom reported managing $5 billion in assets in January.

• 2018

  CEO transition

  [1]Blooomen.wikipedia.org

  Matt Burgener replaced co-founder Chris Costello as chief executive officer.

• 2017

  Series B financing and strategic refocus

  [1]Blooomen.wikipedia.org

  Blooom raised $9.15 million in Series B funding, announced layoffs, and shifted from a business-to-business emphasis toward a business-to-client model.

• 2017

  Assets under management exceed $1 billion

  [1]Blooomen.wikipedia.org

  SEC Form ADV filings showed that Blooom had passed $1 billion in assets under management by September 28.

• 2015

  LaunchKC grant

  [1]Blooomen.wikipedia.org

  LaunchKC awarded Blooom a $50,000 grant.

• 2015

  Series A financing

  [1]Blooomen.wikipedia.org

  Blooom completed a $4 million Series A financing round and reported more than $110 million in assets under management.

• 2013

  Blooom is founded

  [1]Blooomen.wikipedia.org

  Chris Costello founded Blooom as an online registered investment adviser focused on retirement accounts.

Digital, accessible retirement investment advice and account management for individuals and participants in employer-sponsored retirement plans.

• Digital investment advisory · 2013

  Retirement account investment management

  Blooom’s core service was online management of retirement investments. It served individual retirement accounts and participant accounts held in employer-sponsored plans. The offering was designed to provide portfolio-management support through a digital platform rather than through a traditional branch-based advisory relationship.

• Retirement-plan management · 2013

  Employer-sponsored plan advisory

  The platform supported accounts in employer-sponsored retirement arrangements, including 401(k), 403(b), and TSP plans. Its role was to manage individual participant accounts within the investment options and administrative structures associated with those plans.

• 2015One in a Million competition

  United States

  Blooom participated in the Ewing Marion Kauffman Foundation’s One in a Million competition for emerging organizations.

  Outcome. Blooom won the competition and received a $10,000 award.

  Source

• 2022

  Morgan Stanley acquisitionM&A

  Background

  Blooom operated as a digital retirement-investment adviser before being acquired.

  Action taken

  Morgan Stanley purchased Blooom in December 2022.

  Aftermath

  The Blooom service ceased operation after the acquisition.

  Source

• 2018

  Chief executive successionOther

  Background

  Blooom changed leadership as it continued to expand its retirement-advisory business.

  Action taken

  Matt Burgener replaced co-founder Chris Costello as chief executive officer.

  Source

• 2017

  Shift from business-to-business to business-to-client distributionStrategy

  Background

  Blooom reassessed its distribution strategy during a period when it had reached approximately $500 million in assets under management.

  Action taken

  The company announced layoffs and refocused its activities away from business-to-business relationships toward direct business-to-client activity.

  Aftermath

  President Greg Smith resigned during the April 2017 transition. Later that year, SEC filings showed assets under management above $1 billion.

  Source

1. 1Blooomen.wikipedia.org