Fintech Industry Examiner

Virginia-Based Wealthtech Range Lands $28M to Transform Wealth Management with AI

Range, an AI-powered wealth management platform based in McLean, Virginia, has announced the successful completion of a $28 million Series B funding round. The round was led by Cathay Innovation, with participation from Gradient Ventures and other investors, bringing the company’s total funding to $40 million.

About Range

Founded in 2021 by Fahad Hassan and David Cusatis, Range aims to revolutionize the wealth management industry by integrating services such as tax filing, estate planning, retirement planning, insurance, and investments into a single, AI-driven platform. The company’s proprietary AI engine, Rai, enables the delivery of financial advice 10 to 20 times faster than traditional advisors, democratizing access to sophisticated wealth management solutions.

Since its inception, Range has experienced significant growth, with a membership base increasing at 20% month-over-month. The company currently advises over 1,000 high-net-worth members, managing nearly $3 billion in assets. Range distinguishes itself from traditional wealth advisors by offering a transparent, flat-fee pricing model, eliminating the percentage-based fees commonly associated with the industry.

Details of the Funding Round

The $28 million Series B funding round was led by Cathay Innovation, a global venture capital firm known for supporting startups that positively impact the world through technology. Gradient Ventures, Google’s AI-focused venture fund, also participated in the round, along with other investors. This infusion of capital brings Range’s total funding to $40 million, underscoring investor confidence in the company’s innovative approach to wealth management.

The newly raised funds are earmarked for accelerating product development and expanding Range’s engineering teams to enhance its AI-driven platform. This strategic investment aims to further disrupt the traditional wealth management sector by providing more efficient, accessible, and comprehensive financial services to a broader audience.

Simon Wu, Partner at Cathay Innovation, who joins Range’s board of directors, expressed enthusiasm about the partnership, stating, “Fahad, David, and the entire Range team are bringing much-needed innovation to an outmoded industry with a service that’s affordable, convenient, and provides holistic insights and advice in hours versus months or quarters.”

This significant funding milestone reflects the growing trend of leveraging artificial intelligence to transform traditional financial services, offering more efficient and accessible solutions to a broader audience.

Product and Business Model

Range differentiates itself in the wealth management sector by offering a comprehensive, AI-driven platform that consolidates various financial services into a single, cohesive solution. This integration includes:

  • Tax Filing: Streamlining the tax preparation and filing process to ensure compliance and optimize tax outcomes.
  • Estate Planning: Assisting clients in structuring their estates to effectively manage and transfer wealth.
  • Retirement Planning: Developing strategies to secure financial stability in retirement.
  • Insurance: Evaluating and recommending insurance products to protect clients’ assets.
  • Investments: Crafting and managing investment portfolios tailored to individual goals and risk tolerances.

At the core of Range’s platform is its proprietary AI engine, Rai, which enables the company to deliver financial advice 10 to 20 times faster than traditional advisors. This efficiency is achieved through advanced data analytics and machine learning, allowing for rapid, personalized financial strategies. Additionally, Range employs a transparent, flat-fee pricing model, eliminating the percentage-based fees commonly associated with traditional wealth advisors. This approach democratizes access to sophisticated wealth management tools, making them more affordable and accessible to a wider audience.

Achievements and Market Impact

Since its founding in 2021, Range has experienced significant growth and market penetration:

  • Client Base Expansion: The company has attracted over 1,000 high-net-worth members, with membership increasing at a rate of 20% month-over-month.
  • Assets Under Management: Range advises on nearly $3 billion in assets, reflecting strong trust from its clientele.

Range’s innovative approach addresses a growing demand for comprehensive wealth management solutions that integrate various financial services. By leveraging AI technology, Range offers a more efficient and accessible alternative to traditional financial advisory services, positioning itself as a disruptive force in the wealth management industry.

Lots of Dollar bills and a heavy key lying on top of them to show AI Wealthtech Range Raises $28M Series B Led by Cathay Innovation, Eyes Market Expansion
Wealthtech Innovator Range Secures $28M to Scale AI-Powered Financial Platform

Future Plans

With the infusion of $28 million from the Series B funding round, Range plans to:

  • Accelerate Product Development: Enhance and expand the capabilities of its AI-powered platform to better serve clients’ diverse financial needs.
  • Expand Engineering Teams: Recruit top talent to drive innovation and maintain the platform’s technological edge.
  • Broaden Market Outreach: Implement strategies to reach a wider audience, aiming to democratize access to sophisticated wealth management tools.

Co-founder and CEO Fahad Hassan emphasized the company’s vision, stating, “The wealth management industry is witnessing a seismic shift, and Range is at the forefront of this transformation. Within 10 years, 95 percent of the population will rely on a trusted platform like Range.”

This strategic direction underscores Range’s commitment to redefining wealth management through technological innovation and client-centric services.

Insights from Investors

Investors have expressed strong confidence in Range’s innovative approach to wealth management. Simon Wu, Partner at Cathay Innovation, who has joined Range’s board of directors, remarked, “Fahad, David, and the entire Range team are bringing much-needed innovation to an outmoded industry with a service that’s affordable, convenient, and provides holistic insights and advice in hours versus months or quarters.”

Industry Context

The wealth management industry is undergoing a significant transformation driven by technological advancements, particularly in artificial intelligence (AI). According to PwC’s 2023 Global Asset and Wealth Management Survey, the sector is experiencing unprecedented change due to massive consolidation, market volatility, and technological disruption. A notable trend is the projected boom in robo-advice, with assets under management by robo-advisors expected to grow substantially.

Generative AI is also playing a pivotal role in reshaping the industry. KPMG highlights that asset and wealth managers are identifying areas where generative AI can have the greatest impact, including synthesizing data for forecasting and portfolio optimization, monitoring changes to address cybersecurity and risk management concerns, and providing decision support for personalized financial advice.

Range’s AI-driven platform aligns with these industry trends by offering a comprehensive, efficient, and accessible wealth management solution. By integrating various financial services and leveraging AI for rapid, personalized advice, Range is well-positioned to meet the evolving demands of clients seeking holistic financial management.

Conclusion

Range’s successful $28 million Series B funding round marks a significant milestone in its mission to revolutionize wealth management through AI technology. With a comprehensive platform that integrates multiple financial services and a transparent, flat-fee pricing model, Range is democratizing access to sophisticated financial advice. The support from prominent investors like Cathay Innovation and Gradient Ventures underscores the confidence in Range’s innovative approach and potential for growth. As the wealth management industry continues to evolve with technological advancements, Range is poised to play a pivotal role in delivering efficient, accessible, and comprehensive financial solutions to a broader audience.

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