AdvicePay Capital Raise
A Unique Opportunity to be a Part of Something Awesome.

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Summary:

We are raising up to $2,000,000 to help fuel the growth of AdvicePay, the first compliant payment processing platform that helps advisors bill hourly, project, and recurring retainer or subscription fees directly from a client’s bank account or credit card. Founded by industry leaders Michael Kitces & Alan Moore, the platform has quickly grown to over 430 users in just 5 months, and the founders are seeking to raise additional capital to fund additional developers and expanded sales and marketing.

Note: Investor will be accepted on a rolling basis meaning we may close the round before the maximum $2 million has been raised. We anticipate closing the round within 90 days of the first investor committing.

Minimum Investment Size:

$50,000

Total Maximum Investments:

$2 million

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Accredited Investor Requirements:

This capital raise will be done using the SEC General solicitation Rule 506(c). This means all investors must be Accredited Investors to participate in this investment. The definition of Accredited Investor is:

Net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

To be an investor, you will need to complete an Accredited Investor verification form.

The cost is $59/investor to verify your accredited status.

The Process:

Step 1: Schedule call with Alan to discuss participation in this investment round

Step 2: Sign NDA before call

Step 3: Receive copy of business plan and projected financials

Step 4: Complete accredited investor verification

Step 5: Invest in AdvicePay!

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Executive Summary:

AdvicePay expands access to financial planning for clients without sizable investment accounts by providing the first and only compliant ACH and credit card payment processor to facilitate hourly, project, and recurring retainer or subscription fees, along with any other fee-for-service financial planning models.

The financial services industry is undergoing rapid change due to:

  • The rise of the “robo-advisor”
  • The commoditization of basic investment management and asset allocation
  • Changing consumer preferences for real advice over product salespeople, and
  • Regulatory change (first the Department of Labor’s fiduciary rule, now SEC’s Best Interests advice rule, and State level fiduciary rule proposals) that is forcing financial advisors to reduce their (commission-based) conflicts of interest.

Each of these market forces inevitably drives the industry towards various fee-for-service financial planning business models.

Furthermore, industry consolidation of independent advisory firms and the entrance of new institutions into the comprehensive financial advice marketplace (including Vanguard and Schwab), are contributing to the average financial advisor’s “crisis of differentiation” while competing for the typical affluent Baby Boomer client. As a result, a growing number of advisors are seeking new ways to profitably serve clients who have not yet accumulated substantial liquid and investable assets (i.e., Gen X and Gen Y clients), and yet are willing and financially able to pay for personalized financial advice (directly from their income and household cash flow).

To date, though, no payment processing platform for credit cards and bank ACH, to facilitate billing clients directly for their financial planning fees, adheres to the strict regulations that state and SEC regulators impose on Registered Investment Advisers (RIAs) to avoid (or meet the higher standards of) the SEC’s Custody Rule. Independent RIAs are left to choose among four equally bad options:

  • Use a non-compliant system and risk the wrath of the regulators,
  • Risk termination for breaching another payment processor’s Terms of Service,
  • Request clients to write physical checks for services (a highly salient billing approach that reduces retention, and is not administratively feasible or scalable at high volume), or
  • Simply declining to provide services for a standalone fee, because a compliant payment system doesn’t exist.

We launched AdvicePay in January 2018 after a 6-month live beta period.  We have over 400 retail advisor users on the platform, and expect to continue growing by 40-50 retail users per month. Additionally, we have seen enormous interest from enterprise customers with buying power of 50-800+ users each, which is the impetus for us to raise another round of capital.

Our co-founders have a proven track record for leveraging their existing marketing and distribution platforms, including Kitces.com with over 250,000 unique monthly visitors, to grow successful companies in the independent financial advisory space. Their industry knowledge and business management experience, paired with their existing distribution channels, will allow AdvicePay to quickly grow and scale as the market leader for payment processing in the independent advisory space.

We are asking for $2,000,000 on a pre-money valuation of $6,000,000, which we will invest heavily into product development, along with outbound sales, while leveraging our existing inbound marketing capabilities and the recognized brand of our founders. Our highly scalable solution will allow the business to be revenue-positive within 18 months under our accelerated hiring roadmap with new capital. Utilizing a lean startup model, we will prioritize exponential revenue growth opportunities, while maintaining a linear expense increase, in order to reach breakeven (and eliminate the need for future/subsequent capital raises).

For those who are interested in receiving further information and learning more about the offering, follow the process below:

Step 1: Schedule call with Alan to discuss participation in this investment round

Step 2: Sign NDA before call

Step 3: Receive copy of business plan and projected financials

Step 4: Complete the accredited investor verification (the cost is $59/investor to verify your accredited status).

Step 5: Invest in AdvicePay!