63% of full-time employees indicate that financial stress has increased during the pandemic; 72% of employees would be attracted to another company that cares more about financial well-being than their existing employers. Keeping employees engaged and satisfied during the current intensified competition for talent is not only good business but absolutely essential. Addition Wealth is a financial wellness platform for employees to receive trusted guidance in navigating their financial circumstances. Employers, through Addition Wealth, are able to offer financial education and tailored solutions to their employees as a workplace benefit with free, unlimited access to certified financial advisers in addition to a suite of digital tools. Founded by an ex-Uber employee, the company is able to address the needs of employees that have significant equity compensation components in addition to handling more traditional financial planning like budgeting, debt management, retirement, taxes, purchase of a home, and educational planning.
AlleyWatch caught up with Addition Wealth CEO and Founder Ana Mahony to learn more about how Additional Wealth is democratizing access to financial solutions for employees, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We raised a $4.2M Seed round from investors including Nyca Partners, Female Innovators Lab by Barclays and Anthemis, Core Innovation Capital, Financial Venture Studio, and others.
Tell us about the product or service that Addition Wealth offers.
Addition Wealth is a holistic financial wellness benefits platform that empowers employees to make smart, informed financial decisions. Our platform combines digital tools and educational resources with access to financial experts to help employees. Employees can leverage Addition whether they are buying a house, growing their families, paying off debt, and much more.
We have deep expertise in equity compensation and work with tech companies to help employees better understand their equity compensation and how to value it as a company grows, make decisions around exercising equity, and maximize the value of their equity.
Addition goes beyond education and provides individuals with clear, actionable insights based on their unique financial situations.
What inspired the start of Addition Wealth?
I’ve always been deeply passionate about helping people make the best financial decisions for themselves and giving people access to the tools and resources they need to do that. I began my career in consumer finance, working both in the private sector focused on consumer finance as well in government at the CFPB where I worked alongside financial regulators.
I also spent six years at Uber, where I learned the power of building product and tech to reinvent traditional industry models to reach more individuals. From my experience working in both consumer finance and tech, I knew that we could build a platform to provide greater access to personalized financial expertise.
How is Addition Wealth different?
We take a holistic approach to financial topics so that no decisions are made in isolation. It’s important to understand different tradeoffs. For example, should you use your money to max out retirement or use that money to pay off a student loan. We help employees make those sorts of tradeoff decisions across all of their financial needs.
We also have a deep expertise in equity compensation. We help companies and employees through complex equity decisions including understanding the value of a job offer, exercising options, selling through secondary offerings, and IPO preparedness, among other topics.
Addition is completely free to employees. We are a benefit that the employer covers, which includes access to financial professionals. Employees aren’t charged any fees, and we don’t upsell them or sell other products to them.
What market does Addition Wealth target and how big is it?
Addition partners with forward-thinking companies who want to provide financial wellness benefits to their employees. Today, financial wellness and anxiety is the biggest unmet need that employees have today. We know that today, 58% of employees are stressed about their personal finances and 87% of employees want professional help. Just as employers now support physical, mental, and reproductive health, increasingly, employers must support their employees’ financial lives.
We have the power to help millions of employees make smarter, more informed financial decisions.
What’s your business model?
Employers bring Addition on as a benefit to their employees and cover the cost. Employees then get free, unlimited access to our digital tools, knowledge center, online events, and financial professionals.
What are your post-COVID office plans?
We are a fully remote company with employees around the world.
What was the funding process like?
We’re fortunate to have the support of a lot of great investors. It was relatively seamless to raise and our round was oversubscribed
What are the biggest challenges that you faced while raising capital?
Everyone has their own definition when it comes to personal finance and financial wellness. We had to clearly define the problem we saw, the opportunity that exists, and how Addition is taking a unique approach that is different from other companies to meet a need in the market.
What factors about your business led your investors to write the check?
Our investors realized there is a clear market need for more inclusive financial wellness benefits, financial wellness benefits are taking off, and Addition has the right approach by combining technology and human expertise to be a dominant player in the category.
What are the milestones you plan to achieve in the next six months?
In a few short months, we’ve been able to bring on thousands of employees, and we’re extremely proud to see that we are accomplishing our mission and helping them make better financial decisions with confidence. We’re excited to continue to onboard more companies, to build out product offerings for employees, and grow our team.
In a few short months, we’ve been able to bring on thousands of employees, and we’re extremely proud to see that we are accomplishing our mission and helping them make better financial decisions with confidence. We’re excited to continue to onboard more companies, to build out product offerings for employees, and grow our team.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Stay persistent and be resilient. Entrepreneurship is not for the faint of heart.
Where do you see the company going now over the near term?
Our mission is to make personalized financial expertise inclusive and accessible. We have the power to impact millions of people by giving them access to the tools, resources, and knowledge they need to have to make the most of their money and change their lives.
What’s your favorite outdoor dining restaurant in NYC?
Mah Ze Dahr Bakery 🙂
