E-Trade Swallows Cake Financial, Shuts It Down

5 Comments

Cake Financial, a social web service for sharing stock portfolios, has been acquired by E-Trade (s ETFC). The service is to be shut down, information destroyed and account payments reimbursed, according to a thinly positive landing page letter from Cake CEO Steven Carpenter now blocking access to the site. “We are honored to be a part of the E-trade family and believe that E-trade can make the vision we had for all investors a reality,” it reads. No word yet from E-Trade about the deal, the terms of which were not disclosed.

Cake, which launched in 2007, had seen minimal traffic over the past year, according to public records; Compete reports less than 25,000 unique visitors per month. TechCrunch reports the Motley Fool may have also been interested in buying the company. Cake had raised a $1.26 million Series B round from KPG Ventures and Alsop-Louie Partners last year.

Cake competed with Covestor and StockTwits (which, like us, is funded by True Ventures). Another social financial service, Mint, was acquired by Intuit (s INTU) for $170 million in September.

5 Comments

Declan Fallon

Once they changed focus away from user portfolio-tracking to Mutual Funds it lost its appeal; whether that was from a lack of members is up for debate?

Declan

les madras

Looks like etrade is being smart about it. Unlike the dweebs at Intuit….

Curtis

@Liz,

This sounds like a painful fire sale. I’d bet the investors got their money back and E-Trade got a good team on paper, who’ve developed some good experience in the online financial services space. Why else would E-Trade shut Cake down?

I do hope Cake employees got something.

My $.02,

Best.

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