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Harness Wealth: Providing Comprehensive Tax Planning & Financial Advice to The Masses

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By: Headliners News / March 6, 2024

Back in 2018, Harness Wealth embarked on its journey, primarily catering to startup founders and employees by providing comprehensive financial advice. Over the years, the company has evolved, extending its services into the realm of tax advisory. Recently, it secured a notable $17 million extension to its Series A funding, elevating the total financing to an impressive $32 million.

The crux of Harness Wealth’s new venture is a cutting-edge tax advisory platform, positioning itself as a catalyst for leading tax advisors to seamlessly address the intricate financial challenges faced by their consumer clientele. This innovative offering encompasses two additional facets – acting as a dynamic marketplace for the discovery of advisors and services, and incorporating consumer financial insight tools.

Since its last funding round in June 2021, Harness boasts a remarkable 10x expansion in its client base and an extraordinary 1588% surge in gross revenue growth. While specific revenue figures and client counts remain undisclosed, the FinTech startup now caters not only to tech founders but has diversified its portfolio to include pro athletes, a renowned artist with works displayed in MoMA, an Amazon board member, and an esteemed journalist, according to revelations by CEO and co-founder David Snider in a recent interview with TechCrunch.

Harness Wealth’s initial focus on tech industry employees was prompted by the burgeoning capital market activities and the escalating, time-sensitive needs of this demographic in managing their equity. As the company pivots towards tax services, it collaborates with seasoned tax advisors who bring with them an extensive roster of clients. This strategic partnership has seamlessly transitioned many existing clients to become part of the Harness community.

However, Snider envisions that the impact of this tax advice platform will extend beyond the affluent echelons of society. In a bid to reach a broader clientele, Harness Wealth has already secured partnerships with two of the largest financial institutions in the U.S.

Snider emphasized in a recent interview with TechCrunch, “There still are thousands of tech ecosystem builders, though there are also ‘builders’ of all other sorts — small and privately held business owners, professional service executives, investors, etc.” The impetus behind creating this platform stems from the escalating prevalence of equity ownership, interstate relocations, and investments in alternative asset classes, necessitating the development of a proprietary tax solution.

The company also alluded to recent changes in tax laws, particularly those resulting from the Inflation Reduction Act, as a driving force behind their innovative platform. Snider, the former CFO at Compass, highlighted potential implications for high-income individuals, including a substantial increase in taxpayer audits.

In essence, the newly unveiled platform positions itself as a facilitator of collaboration between tax advisors and their clients. Notably, around 75% of Harness’ clients are introduced through advisors joining the platform, while the remaining 25% are direct consumers.

The recent financing round was spearheaded by Three Fish Capital, the venture arm of the Galvin Family (founders of Motorola), with continued support from existing backers such as Jackson Square Ventures, Day One Ventures, Northwestern Mutual Ventures, and Paul Edgerley, former co-head of Bain Capital private equity. Distinguished individuals like Marc Benioff, CEO of Salesforce, Kevin Ryan of Alleycorp, Ori Allon, founder of Compass, Oisin Hanrahan of Angi, and Edith Cooper, a board director at PepsiCo and Amazon, also participated as investors.

Although the company opted to keep its valuation undisclosed, it’s customary for valuations to remain stable during extension rounds.

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