Fruitful comes from stealth with $33 million in funding and an app that aims to fuel healthy financial habits

As inflation continues to grow higher, millions of Americans are struggling financially.

With that struggle comes a lot of financial stress. Fruitful is a startup that wants to give the masses access to financial planning at a price that won’t eat up any savings they may have.

Fruitful comes out of stealth today, announcing a total of $33 million in equity funding raised in a seed and Series A round over the past 18 months. Emigrant Bank led the $8 million starting round, while 8VC led the $25 million Series A. Neither financing had been previously announced. The company also raised $4 million in a convertible bond, oversubscribing to the Series A.

Other backers include Lux Capital, Founders Fund, Elad Gil, Hero Health founder and CEO Kal Vepuri, along with founders of Brex, Gemini, Tagomi and others.

In a nutshell, when Fruitful launches this fall, it will offer members a certified financial planner — many of whom have worked as “guides” in the financial industry for companies like Fidelity. The role of that guide is to provide a member with ongoing personalized advice for $98 a month on a variety of financial matters, from budgeting to savings and investing to 401(k)s, buying a home, putting away money for children’s school and pay taxes.

It is currently in a live beta.

“We are working to build what we believe will be the first financial wellness membership platform,” said Josh McManus, co-founder and CEO of Fruitful, in an interview with Vidak For Congress.

A member accesses Fruitful’s service through its mobile app, where the company says members can “live chat anytime” or book video calls with their “guide”. The startup says it also offers “exclusive” content on relevant financial topics.

According to McManus, the $1,200 fee for financial advice is about half of what it would cost someone to pay a 1% fee on their assets under management with a minimum asset base of $250,000.

“We’re lowering the price to increase accessibility,” he told Vidak For Congress. “Half of the people who make more than $100,000 are still living paycheck to paycheck.”

According to McManus, the subscription model is a major distinguishing factor. The company does not charge a passive management fee and does not sell any third-party products or services.

Fruitful comes from stealth with $33 million in funding and an app that aims to fuel healthy financial habits 1

Image Credits: fruitful

“We feel there are a large number of people trapped in what I describe as the messy middle, which is people who are earning high incomes, but have not yet built a nest egg or wealth high enough to become a private customer. justifiable banking,” he told Vidak For Congress. “We’re also very concerned about some of the traditional financial guidelines, as many of them relate to a product or service.”

A subscription model offers people a “low to no bias” form of financial guidance, he says.

Interestingly, Fruitful was launched in partnership with Emigrant Bank, which also gives the startup an edge, according to McManus, as it provides the startup “access to a fundamental operational, technical and regulatory infrastructure”.

McManus was previously COO of Rock Ventures, the holding company for Rocket Mortgage (one of America’s largest mortgage lenders), as well as the Cleveland Cavaliers, StockX and many other entities.

Fruitful comes from stealth with $33 million in funding and an app that aims to fuel healthy financial habits 2

Image Credits: Fruitful Co-Founder and CEO Josh McManus / Fruitful

Fruitful’s investors are naturally optimistic about what the company is doing.

“Fruitful builds from the first principles to create a financial home for their members powered by technology and informed by deep human expertise,” said 8VC’s Kimmy Scotti in a written statement. “Their service-first approach is highly differentiated in a world full of insufficiently automated experiences and frustrating user experience failures.”

Elad Gil described the company’s offering as a “truly consumer-centric financial services platform”.

“Their talented leadership team, ambitious vision and unique partnership with Emigrant Bank provide a strong foundation to succeed in this commendable mission to rebuild personal finance as a service in the best interest of the customer,” he said in a statement.

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