Savvy Wealth continues on growth path with $15.5M infusion

Savvy Wealth continues on growth path with $15.5M infusion
The latest funding, which completes its $26.5M series A round, will help the digital-first advisory platform maintain its momentum to break $1B this year.
AUG 05, 2024

Digital-first financial advisory platform Savvy Wealth is ready to enter the next phase of its growth story as it receives an additional multimillion-dollar capital infusion.

The company’s latest $15.5 million funding round led by Canvas Ventures announced Monday morning marks the completion of its $26.5 million Series A funding round, which was kicked off initially by an investment from UC Berkley-backed VC firm The House Fund.

With that investment, Savvy Wealth aims to bolster its AI-powered technology platform, expand its product and engineering teams, and recruit more advisors to its national affiliate RIA, Savvy Advisors.

The funding round – which also saw participation from Thrive Capital, Brewer Lane Ventures, Index Ventures, The House Fund, and Alumni Ventures – brings Savvy Wealth's total venture capital backing to over $33 million since its inception in 2021.

Rebecca Lynn, the serial wealth tech entrepreneur who’s also a co-founder and GP at Canvas Ventures, sees the wealth industry as a staid arena “in need of real innovation.”

“Following investments I made in Future Advisor (acquired by BlackRock) and Check (acquired by Intuit), I’ve been waiting to see a company like Savvy Wealth, where AI technology minimizes operational overhead for investment advisors, who are weighed down by archaic processes and mountains of administrative work,” said Rebecca Lynn, co-founder and general partner at Canvas Ventures, in a statement Monday.

Savvy Wealth has rapidly expanded since inception, growing its team to 30 advisors managing over $700 million in client assets within two years. After Savvy Advisors quintupled its AUM during the 12-month period between June 2023 and June 2024, the firm is on pace to surpass $1 billion in AUM later this year.

A recent Fidelity report highlighted that one in six advisors have switched firms in the past five years, primarily seeking independent practices. With a comprehensive technology suite that supports CRM, onboarding, investment management, and other areas, Savvy Wealth has laid a strong claim on its ability to enhance efficiency for independent advisors, reporting it has reduced time spent on administrative tasks by up to 90 percent.

“As advisors increasingly pursue independence, we see a strong opportunity to partner with those who want to provide their clients with a modern, tech-driven experience,” said Ritik Malhotra, founder and CEO of Savvy Wealth, whose tech industry bona fides include his status as a YCombinator and Thiel Fellowship alum as well as two successfully exited startups, Streem and Elph.

Savvy Wealth also offers solutions for high-net-worth investors, including personalized direct indexing, 401(k) account management, financial planning, tax preparation, alternative investments, estate planning, and insurance.

The company’s future growth prospects are further supported by its leadership team which includes professionals from leading technology firms such as Airbnb, Box, Brex, Doordash, Goldman Sachs, Square, and Robinhood.

Additionally, its RIA affiliate has attracted experienced wealth managers from LPL Financial, Merrill Lynch, Morgan Stanley, and several independent RIAs across the country.

“The human relationship between advisors and their clients is what matters most, and advisors need more time to focus on high-value activities,” Malhitra said. “We empower advisors with purpose-built technology to transform their client relationships and scale their practices exponentially.”

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