Finding new clients is a significant hurdle for financial advisors. Cold outreach often fails to yield results, leaving them relying on their network for warm introductions or scouring platforms like LinkedIn, Pitchbook, and ZoomInfo in search of potential leads.
According to Eden Ovadia, co-founder of Finny, the problem is even more pronounced for independent advisors who lack the resources of larger institutions. "Financial advisors have no way to qualify these leads or reach their particular niche at scale," she told TechCrunch in an interview. "As a result, they spend an average of 58 hours going after unqualified prospects before converting a single one."
The Opportunity for Finny
Ovadia and her co-founders, Victoria Toli and Theo Janson, saw an opportunity to address this challenge with the development of AI-powered lead generation platform, Finny. Their goal was simple: to build an agent that could match advisors with prospects who met their specific search criteria.
How Finny Works
After a financial advisor signs up for the platform and provides their requirements, Finny trawls through its database to narrow down potential clients in the advisor’s target niche. The startup also provides a prioritization score that serves as a compatibility metric, based on the predicted chances of a client converting.
In essence, Finny has the potential to provide what could almost be qualified as a "warm" lead, helping advisors find customers who they have the most chance of converting. Additionally, the platform suggests optimal channels for reaching out to high-priority prospects, handles follow-ups, and schedules meetings.
Early Successes
Soon after its founding in late 2023, Finny joined Y Combinator’s Summer 2024 batch and launched a minimum viable product (MVP) in May 2024. The startup has since raised $4.2 million in a seed round co-led by Maple VC and HNVR, with participation from Crossbeam Ventures, Liquid 2, and Y Combinator.
Angel investors Morningstar CEO Kunal Kapoor, Gusto CPO Tomer London, and Deel COO Dan Westgarth also invested in the company. In the six months since launch, Finny says it has seen its revenue rise by 150% every month, with over 40 customers on board. Nearly 250 qualified and vetted firms are currently on a waitlist.
Monetization
Finny monetizes through subscription and success fees. The company initially targeted independent financial advisors due to their limited resources compared to those at large institutions. However, Finny has recently noticed a market shift towards banks, indicating a significant opportunity in that sector as well.
"Our target base is comprised of more than 90% RIAs [registered investment advisors], but we are in the process of setting up trials with some of the larger banks," Ovadia said.
Competitors and Future Plans
Finny’s competitors include ZoomInfo, LinkedIn Sales Navigator, Crunchbase, and Pitchbook. Other peers could be marketplaces that match clients with advisors, such as Farther, Savvy Wealth, and Robinhood, which provide wealth management services.
With the new funding, Finny plans to grow its engineering team and enhance its product. The startup currently has seven staff members.
The Potential for AI in Financial Services
AI has the potential to revolutionize financial services by automating manual tasks, improving customer experience, and enabling personalized advice. Finny’s lead generation platform is just one example of how AI can be applied in this space.
As Ovadia noted, "Financial advisors have no way to qualify these leads or reach their particular niche at scale." With the help of AI-powered platforms like Finny, this challenge can be overcome, allowing financial advisors to focus on what they do best: providing expert advice and guidance to their clients.
