Following a historic year for VC investment in the Baltimore region, we have our first big funding news of 2022: Fintech company Facet Wealth announced the close of a $100 million Series C on Wednesday.
The raise was led by Maryland investment firm Durable Capital Partners LP, with participation from previous investor Warburg Pincus, as well as TeleSoft Partners and Green Cow Venture Capital. This raise comes after a $25 million in Series B in September 2020 and will be used to continue growth of the 300-employee company.
Facet Wealth’s push for growth and funding has been rapid in the past two years. At the start of the pandemic, the company filled a niche in bringing remote advice from a certified financial planner — like the boon of telehealth, but in the financial advice space.
“Our view is very different from the rest of the industry,” cofounder and CEO Anders Jones told Technical.ly. “We spend a lot of time thinking about how can we help you live better today instead of just thinking about saving for retirement or some future date.”
Facet Wealth opens up the market of financial planning by serving a group that isn’t typically the focus of big financial advisory firms: individuals who have assets valued from $100,000 to $1 million, or more than $80,000 income. It charges a flat subscription fee for its services instead of charging fees based on the assets under management. Customers on average pay about $3,000 a year to Facet Wealth to help with guidance on monthly cashflow, debt management and consolidation, family financial planning and the like.
According to Jones, more than 75% of the company’s clients have never worked with a financial advisor before. As their first touchstone to the industry, improving client experience is top of mind for the CEO — and to that effort, Facet Wealth intends to hire more software engineers. (Find open positions here.) Since the company went fully remote in the pandemic, hiring will span the country for wherever talent can be found to support the company’s needs, Jones said.
Facet Wealth has raised more than $165 million to date. This Series C the first massive raise of the quarter, setting the stage for another big year in VC for the Baltimore area: Last year in Q1, companies in the region raised $293.5 million, and for 2021 overall they raised $768 million. Now, we’re already one-seventh of the way
Donte Kirby is a 2020-2022 corps member for Report for America, an initiative of The Groundtruth Project that pairs young journalists with local newsrooms. This position is supported by the Robert W. Deutsch Foundation.