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Harness Wealth Raises $ 15 Million to Democratize Family Office Power – TechCrunch

The Family Office has existed since the 1800s, but it hasn’t been as diverse as it has been in recent years.according to 2019 Global Family Office Report According to UBS and Campden Wealth, 68% of the 360 ​​family offices surveyed were established after 2000.

Their rise is due to a number of factors, including tech startups that create new millionaires and millionaires each year, and the increasingly complex choices that Mula-rich people encounter. Think about household management, legal matters, trust and real estate management, personal investment, and philanthropy.

Still, family offices tend to cater to people with investable assets Over $ 1 billion, According to KPMG. Even multi-family offices, where resources are shared with other families, are more commonly targeted at people with an investment of at least $ 20 million. Its high bar means that there are still many people with many resources in need of possession.

enter Harness WealthFounded by David Snider and Katie Prentke English, a 3-year-old New York-based outfit, it caters to individuals with increasingly complex financial situations such as tracking liquidity events. Everyone understands how their vested interests can change abruptly and how difficult it is to manage them when working full-time.

Snider graduated from school as an Associate of Bain & Company and later became the first business employer of the real estate company Compass as an Associate of Bain Capital and was promoted to COO and CFO after raising $ 25 million in Series A. 2013. Of course, the small company has grown. Less than four months after the IPO in late March, the compass boasts a market cap of nearly $ 27 billion.

Indeed, over the years, Snyder, who rejoined Bain as a residence executive 4.5 years later with a compass, saw a great opportunity to bring together the often siled business of tax planning, real estate planning and investment planning. started. “It resonated with me personally. My resume had all these great things, but every six months, something else I could or should have done with my assets. I found. “

Prentke English is also like many of the clients HarnessWealth supports today. After spending more than six years at American Express, she spent two years as CMO of London-based online investment manager Nutmeg. She quit the role of starting the harness after being introduced to Snyder through a mutual friend.Meanwhile, nutmeg was free Won According to JP Morgan Chase.

There is no shortage of wealth managers that such individuals can rely on, but Harness says it does more than pair people with appropriate independent registered investment advisers. is It’s an important part of the business and part of the secret source of the technology platform, he says. It also helps customers connect with professional teams from different industries, depending on their needs. This is different from access if the individual has a family office.

We share earnings with advisors on the platform on how harnesses make money. According to Snyder, the percentages vary, but they are “continuous revenue sharing to ensure integrity with clients.” In other words, “it only works if they have long-term success with our platform advisors,” he adds. ..

Ultimately, the company believes it can replace many of the do-it-yourself services available on the market, such as Personal Capital and Mint. That confidence is partly rooted in Snider’s experience with Compass. This was initially able to navigate realtors, but it also turns out that “people wanted better data insights and better user interfaces, but they wanted it in combination with someone. There were many clients who looked like them, “says Snider.

He added that Plenke English joined forces with him after discovering that Nutmeg was also “running the limits of an inhuman solution.”

Investors certainly think the treatise makes sense. Harness closed $ 15 million in Series A funding led by Jackson Square Ventures. This is a round that raises the company’s total funding to $ 19 million. (For new and existing investors, Bain Capital, Torch Capital, Activate, Gingerbread Capital, FJ Labs, i2BF Ventures, First Minute Capital, Liquid 2 Ventures, Array Corp, Marc Benioff, Compass Founder Orialon, Former Joint Includes owner Paul Edgeley.-Head of Bain Capital Private Equity.

Interestingly, what Harness Wealth does with its fresh capital, some of which is used to develop its own captive business line called the Harness Tax. As Snider explains, more clients have the biggest tax plans, given what’s happening at the forefront of IPOs, SPACs, remotework, and cryptocurrencies where more people are pouring money. I am aware that it is one of my concerns. Tax law has caught up around that.

That makes sense given that tax planning is time-sensitive and often determines the overall financial planning strategy. At the same time, it’s not surprising that some of Harness Wealth’s advisory partners may stop working in their outfits if they think they’re evolving into rivals.

Snider claims that Harness Wealth, which currently employs 22 people and is not yet profitable, has no such design. “Our goal was only to help those who can add value, and we saw the opportunity to be tax-focused.”

Harnesses have “a great many people who may not understand their tax obligations,” especially due to the crypto boom, he explained, “we want to make sure we are at the forefront. We are ready to help you if needed.

https://techcrunch.com/2021/06/28/harness-wealth-raises-15-million-to-democratize-the-power-of-family-offices/ Harness Wealth Raises $ 15 Million to Democratize Family Office Power – TechCrunch

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