Harness Wealth Raises $17M in Series A Extension to Expand Tax Advisory Services
A New Era in Financial Planning: Harness Wealth’s Expansion into Tax Advisory
In 2018, Harness Wealth emerged as a pioneer in providing financial advice to startup founders and employees. Since then, the company has undergone significant transformations, expanding its services into the tax advisory space. This expansion has been bolstered by a substantial $17 million extension to its Series A round, bringing the total financing to an impressive $32 million.
Harness Wealth’s Innovative Tax Advisory Platform
Harness Wealth is now offering a cutting-edge tax advisory platform that empowers leading tax advisors and enables an integrated service to tackle the complex financial needs of its consumer clients. This innovative platform represents a significant development in the fintech industry, addressing the pressing need for high-quality, digitally enabled tax services.
The Harness offering also comprises two additional components:
- A marketplace for discovering advisers and services
- Consumer financial insight tools
Rapid Growth and Expansion
Since its last raise in June 2021, Harness Wealth has witnessed remarkable growth. The company claims to have expanded its client base by a staggering 10x and achieved an impressive 1588% bump in gross revenue growth. While the company declined to disclose specific revenue numbers or client counts, it is clear that Harness Wealth’s services are in high demand.
Diversified Client Base
Harness Wealth’s clientele spans across various industries, including tech founders, pro athletes, renowned artists, Amazon board members, and iconic journalists. CEO and co-founder David Snider attributes the growth to the increasing needs of these high-net-worth individuals, particularly in managing their equity and navigating complex tax laws.
Addressing a Critical Market Gap
Prior to expanding into tax advisory services, Harness Wealth primarily focused on tech industry employees during the boom in capital market activities. However, as clients’ needs evolved, the company recognized the need for high-quality, digitally enabled tax services. In response, Harness partnered with experienced tax advisors who brought their existing client bases with them.
The Future of Tax Advisory
Harness Wealth’s new tax advice platform aims to cater to a broader clientele beyond just high-net-worth individuals. The company has already been tapped as a tax partner by two major financial institutions in the U.S. Snider envisions that this innovative platform will empower thousands of tech ecosystem builders, small business owners, professional service executives, investors, and others.
Recent Developments in Tax Laws
The introduction of the Inflation Reduction Act has brought significant changes to tax laws, which could have far-reaching implications for high-income individuals. Snider emphasizes that the new platform is designed to address these complexities and provide seamless collaboration between tax advisors and clients.
About 75% of Harness’ clients come through advisers who join the platform, while 25% are consumers. This diverse client base underscores the company’s ability to cater to various needs and preferences in the financial planning space.
Investor Support
The latest financing round was led by Three Fish Capital, the venture arm of the Galvin Family (founders of Motorola). The round also included participation from existing backers Jackson Square Ventures, Day One Ventures, Northwestern Mutual Ventures, and Paul Edgerley, former co-head of Bain Capital private equity. Notable investors in Harness Wealth include Salesforce CEO Marc Benioff, Alleycorp’s Kevin Ryan, Compass founder Ori Allon, Angi’s Oisin Hanrahan, and Edgerley.
Conclusion
Harness Wealth’s expansion into tax advisory services represents a significant milestone in the fintech industry. With its innovative platform, impressive growth, and diversified client base, Harness is poised to revolutionize the way individuals navigate complex financial needs. As the company continues to push boundaries in financial planning, it will be exciting to see how Harness Wealth shapes the future of tax advisory services.
Investors are eager to support companies like Harness Wealth that are driving innovation in the fintech space. With a strong track record of growth and expansion, Harness is well-positioned to continue making waves in the industry.
