Wealth management platform Compound has closed a $25m Series B round led by Greenoaks and angel investor former Stripe product manager Lachy Groom, a report by Coverager has revealed.
Founded in 2019, Compound provides wealth management for startup employees, helping them figure out what their stock options actually mean, forecast their value over time and optimise against things like potential taxes. Launched two weeks ago, they currently have 200 startup employees as customers.
The startup, which calls itself an “all-in-one solution for managing personal finances”, has raised $37m to date from several investors.
According to a report from WealthManagement.com, Jordan Gonen, co-founder at Compound, said, “The next generation of wealth is holding a different suite of assets, one that traditional wealth management is often struggling to support… We strive to be holistic and have found that our clients don’t think about their assets in a silo.”
The cost to clients for Compound’s services is “based on complexity,” according to Gonen. While the firm does not publish a price list, the cost can range from a few hundred dollars a year for a client with simple planning or investment needs up to “tens of thousands a year” for those with the most complex requirements, for example, in the area of stock option management from a liquidity event. The firm performs an assessment working with each client at the outset to determine the exact level of service.
Other participants in the capital raise included Egon Durban of Silver Lake, Sam Bankman-Fried of FTX, YCombinator, XYZ, SciFi, Day One Ventures, and founders and executives from Coinbase, Goldman Sachs, Meta, Stripe, Brex, Plaid, Adobe, Notion, AngelList, Eventbrite, Affirm, Polychain, Paradigm, Blend, Quora, Vise, Carta and Point.
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