Focal, an innovative AI-based productivity platform designed specifically for financial advisors, has announced the raising of $5 million in a seed funding round. This funding comes from a coalition of leading venture capitalists and industry experts, with Distributed Ventures and Wischoff Ventures at the forefront of the investment.
The newly acquired capital will significantly accelerate the development of Focal’s features aimed at improving the advisor experience. These features include automation of meetings, performance coaching, and back-office workflow management. Additionally, the funding will facilitate broader enterprise adoption of the platform’s capabilities, introducing automations that can manage workflows securely across various advisor tools and back-office systems, regardless of API availability.
Many financial advisors face challenges from their job demands, with nearly 28% reporting that manual workflows and compliance obligations significantly reduce their time for client-facing activities. As client expectations evolve and increase, advisors are actively seeking solutions that not only save time but also enhance efficiency and improve the overall client service experience.
Focal addresses these challenges by harnessing data from conversations and various advisor tools to create powerful workflow automations and actionable client insights. The platform offers a variety of features that include AI note-taking, pre-meeting preparation tools, synchronization with CRM systems, performance coaching, onboarding assistance, and help with Know Your Customer (KYC) workflows. By streamlining these processes, Focal empowers financial advisors to reclaim up to 50 hours per month, allowing them to serve up to 30% more clients effectively.
At the helm of Focal is an experienced leadership team that includes Connell, Jerry Bai (Chief Product Officer), and Clay Stupi (Chief Technology Officer). Collectively, they bring decades of experience in scaling enterprise software-as-a-service (SaaS) and compliance platforms from their time at companies such as Microsoft, DocuSign, and Chainalysis, as well as from leading wealth management firms. This extensive background equips them to develop technology that meets the stringent demands of the highly regulated financial services industry.
Focal’s commitment to addressing advisor pain points has attracted interest from various investors, advisors, and executives across the financial services sector. The company benefits from the insights of advisors with invaluable experience at prominent firms like Fidelity and Ritholtz Wealth Management, who understand both the obstacles faced by advisors and the compliance requirements at the enterprise level.
Among the notable investors and contributors are Jason Pereira, Senior Partner at Woodgate Financial; Jamie Hopkins, Chief Wealth Officer at WSFS Bank; Kellan Brown, Chief Operating Officer at 100 Women in Finance; and Michael Batnick, General Partner at The Compound Capital Fund I, LP. Their expertise plays a crucial role in establishing Focal’s reputation as a trusted provider of enterprise-grade solutions that conform to industry regulations and generate meaningful productivity improvements.
Along with its workflow automation capabilities, Focal prioritizes security, employing enterprise-grade measures, stateless AI models, and human-in-the-loop safeguards. This compliance-oriented design is supported by U.S.-based engineering leadership and provides a reliable solution that aligns with SEC and FINRA regulations.
Focal stands out as the only advisor AI platform delivering these services exclusively on enterprise-grade Microsoft Azure. And its stateless AI models are designed never to retain or use personally identifiable information, ensuring that client privacy and security are paramount.
KEY QUOTES:
“To stay competitive and grow assets under management, firms must adopt AI to deliver smarter, faster, more personalized service—or risk falling behind. Focal isn’t about adding another tool to advisors’ tech stacks. Because our AI sits across all of these tools, it is reshaping how firms fundamentally operate. Focal was formed to help advisors save time, generate more revenue and optimize the client experience. Advisors at leading RIAs and enterprise teams rely on Focal to reclaim hours each week, and this funding will further accelerate our ability to service personalized autonomous workflows.”
John Connell, chief executive officer of Focal
“It’s rare to see a team with such deep enterprise software experience that also understands the complexities of regulated industries. The Focal team has experience building infrastructure for broker-dealers, large financial institutions and even the U.S. government. They’ve also worked closely with regulators, giving them firsthand insight into compliance requirements and best practices for developing these financial platforms. We’re looking forward to seeing how they can accelerate their AI platform and transform the financial advisory landscape.”
Shawn Ellis, managing partner of Distributed Ventures
“Time is money for financial advisors. Focal is uniquely positioned to eliminate hours lost to manual, repetitive tasks. The team’s clarity of vision, technical execution and exclusive data partnership give them a real edge in reshaping advisor workflows.”
Nichole Wischoff, managing partner of Wischoff Ventures
