Pocketnest is a fintech startup that has created a financial planning platform to help users handle their money and budget out their lives. The company recently announced the close to its seed funding round to generate a larger user base and scale up business operations.
How Pocketnest Works and Rapid Business Growth
Fintech startup Pocketnest provides users with coaching on 10 major pillars of financial success: investing, budgeting, estates and wills, college savings, debt management, taxes, building credit, loans, retirement, and insurance. Founded by wealth manager, Jessica Willis, the female-led company works by licensing out its software to major financial institutions, credit unions, banks, and everyday employers who provide it as a benefit to their customers or employees.
The fintech startup claims to give users all the coaching and education they need to financially improve their situation in just three minutes a week. The company also claims that business owners and financial institutions that license Pocketnest software will save up to $50,000 annually per service team and serve up to 16x more users than before.
After graduating from the Google for Startups Accelerator, the company is experiencing rapid business growth, with Pocketnest reporting a 156% growth in enterprise customers since 2020. Additionally, the fintech startup reported a 115% growth in total users over the same time period. Furthermore, Pocketnest user engagement has grown by 65%.
The company has also built new business partnerships with several financial institutions, including MSUFCU, which recently released access to the Pocketnest platform to over 300,000 customers. Other partners include companies such as 4Front Credit Union, the Foundation for Financial Wellness, The Henry Ford, and Lake Trust Credit Union.
Pocketnest is entering into a United States (US) financial planning market estimated to be worth over $59 billion in 2022. The market is projected to grow by 4% over the course of the year to surpass $60 billion by 2023. While the market is still mainly built on major financial institutions, business is slowly shifting toward easy-to-use, technology-based solutions.
Pocketnest Funding Round and Future Business Plans
In its seed funding round, Pocketnest raised $1.95 million in capital. The funding round was led by The Impact Seat and ID Ventures with participation from a number of institutional investors such as the Reseda Group.
The company plans to use the new funding to help support the launch of its new employees wellness platform. The platform will serve as a way to benefit its staff as Pocketnest continues to hire a larger number of workers to support business growth. The fintech startup also plans to build new business partnerships with employers and financial institutions to further expand its user base.
When commenting on the latest funding round for the startup company, CTO of Reseda Group and VP of Digital Strategy & Innovation at MSUFCU Ben Maxim said, “Reseda Group is proud to partner with Pocketnest. We invest in dynamic companies—like Pocketnest—that strive to create a better member experience and change how people think about personal finance. Pocketnest makes financial wellness attainable to all our members, from those with $100 to $100,000. We're excited to be part of their story.”
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.