Harness Wealth started in 2018 primarily providing financial advice to startup founders and employees, but has expanded into the tax advisory space, with $17 million in extension funding in a Series A round. , bringing the total amount raised to $32 million.
The company says it is delivering a new tax advisory platform that powers leading tax advisory practices and enables integrated services to solve financial complexities for consumer clients. Harness's two other components of the product serve as a marketplace for discovering advisors, services, and consumer financial insight tools.
Harness claims to have grown its customer base 10x and total revenue growth by 1588% since its last funding in June 2021, but does not disclose specific revenue or customer numbers. is refusing. For example, in addition to serving many technology founders, Harness now serves professional athletes, an artist whose work is exhibited at MoMA, an Amazon board member, and an “iconic” journalist. CEO and co-founder David Snyder told TechCrunch that the company is welcoming customers. Prior to Series A, Harness's Wealth was primarily focused on technology industry employees due to booming capital market activity and increasing time-sensitive needs for managing equity for this demographic. I did.
“The needs of this group led us to seek high-quality, digitally enabled tax services in the market,” he said. To meet that need, Harness partnered with experienced tax advisors who, in most cases, already had a large clientele. So when those advisors partnered with his Harness, many of those clients also became his Harness clients.
But Snyder hopes the new tax advice platform will help a broader range of clients than just the ultra-wealthy. To this end, the startup has already been selected as a tax partner by two of the largest financial institutions in the United States.
“There are still thousands of technology ecosystem builders, but there are also all kinds of other 'builders', including small business and sole proprietors, professional services executives, and investors,” he said. said.
“The prevalence of stock ownership, interstate mobility, and increased investment in alternative asset classes has led us to focus on building unique tax solutions.” Harness also created this new platform. Part of the motivation also includes recent changes in tax law. Harness, a former chief financial officer at Compass, said the effects of the Inflation Control Act could have a big impact on high-income earners, including “significant increases in taxpayer audits.”
Simply put, the new platform “enhances collaboration between tax advisors and their clients,” the company said. Approximately 75% of Harness' customers come through advisors who join the platform. 25% are consumers.
Three Fish Capital, the venture arm of the Galvin family (founders of Motorola), led the latest round of funding, joined by existing backers Jackson Square Ventures, Day One Ventures, Northwestern Mutual & Co. Ventures and former Bain Capital co-head Paul Edgerly were included. Private equity. Other investors include Salesforce CEO Marc Benioff, Alleycorp's Kevin Ryan, Compass founder Oli Allon, Angi's Oisin Hanrahan, and PepsiCo and Amazon board member Edith Cooper. is included. The company declined to disclose valuations, but extension rounds typically keep valuations flat.
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