Cashmere, a pioneering WealthTech startup, has successfully raised $3.6m in seed capital. The funding round was spearheaded by FinTech venture specialists, Canapi Ventures.
The firm plans to utilize the $3.6m investment to accelerate its product development and expand its team. This includes the notable appointment of a Head of Machine Learning, marking a significant strategic enhancement to their capabilities.
Specializing in the automation of client acquisition for wealth management firms, Cashmere has developed a cutting-edge AI platform. This platform is designed to streamline the process of identifying and engaging potential clients, which is increasingly critical given the imminent ‘Great Wealth Transfer’. Over the next two decades, $90trn is expected to shift hands from Baby Boomers to younger generations in the US alone, presenting a unique opportunity for wealth management firms to capitalize on this demographic shift.
The investment will be directed towards refining Cashmere’s technology and expanding its reach within the wealth management sector. The company aims to address the prevalent challenges in building effective sales funnels for high-net-worth individuals, a problem that persists across the industry, from small independent firms to giants like Goldman Sachs and Morgan Stanley.
Cashmere CEO and Co-founder, Farbod Nowzad, expressed his enthusiasm for the platform’s potential. “There’s essentially no other industry where you can acquire a non-enterprise client that generates $50k-100k per year in revenue and sticks around for 20-30 years.
“Despite this, the industry does not have the infrastructure and intelligence layer to consistently identify who the best clients are, match them with the right advisor at the right time and begin the trust-building process. By relying on referrals and dated processes, firms are leaving a lot of money on the table. We built Cashmere from first principles to address this.”
Leading the investment, Canapi Ventures along with other contributors such as Benchstrength, Plug and Play, The House Fund, Courtyard Ventures, and several angel investors have shown strong support for Cashmere’s mission.
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