Powder, a fintech company that creates generative AI agents to automate time-consuming tasks, enabling wealth management firms to focus on serving clients and growing their businesses, announced that it has closed on a $5 million seed round, which will enable the company to continue scaling its technology, taking advantage of the AI boom that is rapidly transforming industries.
This funding originates from a syndicate of 40 Silicon Valley insiders who are very invested in a generative-AI enabled future, including Y Combinator, General Catalyst, Funder’s Club, Elefund, Litquidity Ventures, Script Capital and renowned technology executives Jon Xu and Bryant Chou. And with the added resources, Powder will further integrate its AI agents into a broader range of workflows.
Powder saves wealth management firms time and money by parsing complex financial and estate documents in seconds and providing advisors with ready-to-use extracts. Powder’s AI agents are as accurate as humans, using its hallucination detection to pinpoint important information in minutes, not hours. This frees advisors and analysts to focus on client service and work that provides direct value to clients and prospects.
This technology also offers a generative AI chat feature for each of the firm’s clients, allowing analysts to obtain answers to essential data questions rapidly, similar to chatting with an AI assistant who can instantly answer questions about a specific client by consulting financial documents.
Powder’s AI agents could be deployed across multiple areas of the wealth management industry, from proposal generation to portfolio analysis. And more importantly, the technology is secure with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Unlike ChatGPT, individual firms own and control the data, ensuring clients’ personal information is 100% secure.
In the six months since the firm launched, Powder developed a growing list of top wealth management clients, including Catalytic Wealth, EPIQ Capital and IEQ Capital.
KEY QUOTES:
“Artificial intelligence is the future of wealth management. Businesses, regardless of size or scale, grapple with time management and how best to extend limited resources. With Powder, firms have a powerful tool to uplevel and future-proof their businesses. Firms with AI embedded in their culture will thrive.”
- Powder CEO Kanishk Parashar
“Powder drives several front and back-end tasks, enabling us to optimize our time for more productive activities. Their instantaneous review capabilities significantly enhance the speed and accuracy of our advice, and we are excited to see the platform evolve. Powder’s team uniquely understands industry and advisor needs making for a mutually beneficial partnership.”
- Joe Mathews, Wealth Manager at Catalytic Wealth
