The information age has led to a meteoric increase in the number of available investment options.  As the younger generation builds assets and seeks to invest with financial advisors, there is an emerging appetite for responsible investing, where the investor is keen on ensuring that his/her portfolio matches their ideals. Modern asset managers seek to offer aligned investment opportunities that consider mindset, preferences, values, and risk tolerance.   Seeds is a platform built specifically for financial advisors, by financial advisors, to allow them to understand the investment and value preferences of their clients and construct portfolios based on these criteria.  By conducting an initial assessment with clients that’s streamlined by the platform, advisors can build a multi-dimensional profile that allows them to tailor personalized multi-asset portfolios rather than just simply dropping assets into some pre-set, default, cookie-cutter bucket as many advisors have traditionally done in the past.  The platform also provides portfolio insights that optimize the time needed for client reviews, while continuously measuring performance against a holistic set of client goals.

AlleyWatch caught up with Seeds Investor Cofounder and CEO Zach Conway to learn more about the business, the company’s strategic plans, latest round of funding, which brings the company’s total funding raised total to $4.7M, and much, much more…

Who were your investors and how much did you raise?

We secured a $2M extension round, led by Blank Ventures, which will enable us to more quickly evolve our product to meet the needs of the growth-minded advisors we serve. Participation in this round also included existing investors Social Leverage as well as The Compound Capital Fund I, LP, the affiliated venture capital fund of Ritholtz Wealth Management.

Tell us about the product or service that Seeds offers.

Seeds helps advisors make the investing experience more meaningful, intentional and personal with our all-in-one digital solution. Our platform allows advisors to more easily understand and act upon the needs, interests, and priorities of their clients.

Using our tool, advisors can:

• Assess their clients across three dimensions — mindset, values, and risk tolerance
• Create customized and meaningful investment proposals
• Present engaging portfolio insights in alignment with their client’s interests and values

What inspired the start of Seeds?

Before Seeds came into the picture, my father, Michael Conway, and I ran an advisory firm with the tagline “Aligning Life & Wealth.” Our primary focus was on understanding the unique needs of families, going beyond mere numbers, and crafting truly personalized and experiential financial plans. Despite our commitment to personalized service, we couldn’t help but notice an irony in our approach—the investing aspect lacked personalization and failed to deliver an engaging experience for our clients.

Our assessment of investors was primarily limited to their risk tolerance, and we subsequently placed them into generic, one-size-fits-all model portfolios, leaving them unaware of the specific investments they owned. The discussions during review meetings centered around performance, neglecting the broader financial goals and aspirations of our clients. We knew there had to be a better way to introduce investing as an experience.

However, at that time, we faced a challenge: we lacked the necessary software and tools to offer personalization at scale. We wanted to create a platform that would empower people to achieve their financial goals through carefully constructed portfolios, all while introducing the idea of investing as a meaningful and enjoyable journey.

How is Seeds different?

While some firms may offer certain aspects of what we do, we firmly believe that we occupy a distinct category of our own. Our differentiating factor lies in providing a genuinely co-adopted experience that spans the entire client lifecycle, forging a strong partnership between our advisors and investors. Unlike others, we seamlessly integrate the expertise of our advisors with the aspirations and goals of our clients, creating a collaborative journey that is unparalleled in the industry. This approach ensures that every step of the way, from initial planning to ongoing support, the advisor and investor work together harmoniously to maximize their financial success.

What market does Seeds target and how big is it?

Seeds is meticulously tailored to cater to registered independent advisors (RIAs), a niche of financial professionals known for their commitment to providing unbiased and personalized advice to clients. As of June 2023, this esteemed community in the United States consisted of more than 15,000 RIAs, collectively managing more than $114 trillion in assets.

The growth trajectory of RIAs is undeniably remarkable, with their assets under management experiencing a robust 12% five-year compound annual growth rate (CAGR). This noteworthy expansion reflects the growing acknowledgement from investors of the unparalleled value that RIAs bring to the table, navigating the complex financial landscape with transparency, expertise, and client-centricity. As RIAs continue to flourish, Seeds stands poised to empower and elevate their capabilities, enhancing the financial well-being of both advisors and their valued clients.

What’s your business model?

Seeds adopts a dynamic pricing model that combines the advantages of Software as a Service (SaaS) subscription with traditional asset management pricing. Through this innovative approach, we ensure our clients benefit from the best of both worlds.

With our SaaS subscription model, advisors gain access to our cutting-edge software tools, enabling them to streamline their operations, enhance efficiency, and deliver top-notch personalized financial planning experiences to their clients. This subscription-based structure allows for easy scalability and regular updates, ensuring our clients always have access to the latest features and improvements.

With our SaaS subscription model, advisors gain access to our cutting-edge software tools, enabling them to streamline their operations, enhance efficiency, and deliver top-notch personalized financial planning experiences to their clients. This subscription-based structure allows for easy scalability and regular updates, ensuring our clients always have access to the latest features and improvements.

In addition to the SaaS subscription, Seeds incorporates the familiarity and effectiveness of traditional asset management pricing. This means that advisors pay fees in proportion to the assets they manage, aligning their interests with the financial success of their clients. As assets grow, the fee structure reflects the increased responsibility and dedication to ensuring optimal outcomes for investors.

By combining SaaS subscription and traditional asset management pricing models, Seeds offers a comprehensive and flexible solution that empowers advisors and elevates the financial experiences of their clients.

How are you preparing for a potential economic slowdown?

At Seeds, we maintain a lean and agile approach. Our primary focus is on our product roadmap, constantly refining and improving it to provide our users with an outstanding experience. In order to support our customers’ growth targets, we strategically allocate resources, bringing in specialized expertise precisely when and where it is most needed. This enables us to quickly and efficiently adapt to changing demands as they arise. By remaining proactive and flexible, we are well positioned to navigate any potential economic challenges and continue delivering value to our customers.

What was the funding process like?

Our strategic approach centered on cultivating a robust network of angel investors and early-stage venture firms. We sought partners who not only possessed a deep understanding of our industry but also demonstrated a tangible commitment to support our endeavors beyond providing capital. This deliberate outreach allowed us to forge meaningful connections that have been instrumental in propelling our efforts forward.

What are the biggest challenges that you faced while raising capital?

Raising capital inherently presents a “Catch 22” situation, as it is vital for fueling business growth, yet it consumes valuable time and energy that could otherwise be dedicated to product development and execution.

What factors about your business led your investors to write the check?

I think it comes down to our people, the product we’ve developed, and the impact we can have on advisory firm growth given the ever-changing profile of today’s investors.

As advisors, we have a deep understanding of our customer and the challenges they face, and we have assembled a team of individuals who bring unique experiences and skills to help execute our vision. Together, our collaboration has enabled a truly differentiated solution that combines customized investment products with technology that makes investing with an advisor a more personalized and meaningful experience.

What are the milestones you plan to achieve in the next six months?

We plan to continue onboarding new advisory firms while updating our product to make it even easier for advisors to take investor mindset, risk tolerance, and values into account as they deliver a meaningful investing experience.

What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?

Prioritize engaging with investors who possess a deep understanding of the industry in which your solution operates. Avoid allocating time to firms solely based on their prestigious reputation, and instead, concentrate on those who can genuinely contribute value to your venture’s growth and success. A carefully curated group of knowledgeable investors can prove far more beneficial to your business than mere names on your cap table.

Prioritize engaging with investors who possess a deep understanding of the industry in which your solution operates. Avoid allocating time to firms solely based on their prestigious reputation, and instead, concentrate on those who can genuinely contribute value to your venture’s growth and success. A carefully curated group of knowledgeable investors can prove far more beneficial to your business than mere names on your cap table.

Where do you see the company going now over the near term?

Our unwavering focus remains on enhancing our product to consistently align with the evolving needs of the firms we serve. By continuously refining and adapting our solution, we ensure it is well positioned to exemplify the concept of “investing as an experience” for advisors and clients alike.

What’s your favorite restaurant in the city?

In the ever-changing landscape of New York City’s dining scene, countless establishments rise and fall like startups, facing numerous challenges to achieve long-term success. However, a select few, like Gramercy Tavern, manage to endure and become iconic, reflecting the significance of getting things right to establish themselves as longstanding culinary landmarks.

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• Source: https://www.alleywatch.com/2023/07/seeds-investor-financial-advisor-portfolio-construction-platform-tailored-customized-clients-management-zach-conway/