Tribevest Raises $3M to Revolutionize Collaborative Investing

The Genesis of Tribevest: From a Fishing Trip to a Collaborative Investing Platform

In 2008, Travis Smith, the founder of Tribevest, embarked on a fishing excursion with his siblings. This trip highlighted a significant realization: despite holding what were considered stable positions with retirement plans, their financial aspirations felt unattainable.

Overcoming Capital Constraints Through Collective Investment

Smith recounted to TechCrunch that the brothers shared a common ambition – achieving financial independence through real estate investment. However, individual financial resources proved insufficient to initiate ventures independently.

“It was during that trip that we experienced a pivotal moment,” Smith explained. “We understood that by combining our resources, we could begin to accumulate the necessary capital.”

Initially, Smith and his brothers committed to monthly contributions of $500 each. These consistent deposits gradually grew, ultimately enabling their first real estate acquisition. Subsequent successful deals empowered Smith to establish Tribevest in 2018.

Addressing a Gap in the Market

As Smith shared his experience with friends, requests emerged for assistance in forming similar investment groups. This prompted him to reflect on the challenges he and his brothers had encountered during their initial stages.

“We critically assessed the existing market landscape and considered how we could have improved the process,” Smith stated. “The conclusion was clear: a comprehensive platform to consolidate all necessary components was lacking.”

Tribevest: A Platform for Collaborative Investing

Tribevest was conceived to fill this void. It facilitates the creation of investor groups, referred to as “tribes,” enabling them to establish LLCs, generate operational documentation, and open FDIC-insured bank accounts.

Furthermore, the platform supports collective decision-making through voting mechanisms for investment choices. It also provides tools, such as a business ledger, to monitor investment performance.

LLC structures are leveraged for governance, assigning executive roles and allowing members to propose and vote on group regulations – all actions are securely recorded within the Tribevest system.

Tribevest operates as an “investment-agnostic” platform, meaning groups independently identify investment opportunities through their networks or external sources.

Through a business bank account provided by Blue Ridge Bank, “tribes” can conduct transactions both digitally and traditionally via checks and wire transfers. Smith envisions Tribevest becoming “the collaborative banking layer of the investment world.”

Securing Seed Funding for Expansion

The Columbus, Ohio-based company recently secured $3 million in seed funding to accelerate its growth. A company spokesperson confirmed this information to TechCrunch.

Investors in this round include I2BF Global Ventures, Mucker Capital, Gaingels, Vibe Capital, and singer-songwriter Ryan Leslie. Leslie participated through an investor group formed on the Tribevest platform, alongside personal finance podcasters Rashad Bilal and Troy Millings.

Growth and User Demographics

Tribevest previously raised $500,000 in a pre-seed round and surpassed its customer acquisition targets in both 2020 and 2021, according to Smith.

Currently, over 1,000 “tribes” have been launched on the platform, with more than 570 actively engaged in transactions across diverse asset classes. The average “tribe” consists of four to five members, although sizes range from two to fifty.

Notably, over half of Tribevest’s user base identifies as people of color. Smith emphasizes the company’s commitment to broadening access to wealth for underrepresented communities, positioning Tribevest as a tool for learning proven wealth-building strategies.

Accessing Private Markets and Mitigating Risk

Tribevest empowers users to participate in private markets, such as real estate and startups, which often require substantial initial investments, by pooling their funds. While some groups invest in publicly traded stocks, approximately 80% of Tribevest users focus on private market opportunities.

Smith also noted that, beyond financial constraints, he and his brothers initially lacked the confidence to invest in real estate individually. Investing within “tribes” provides a means to explore new asset classes while simultaneously diversifying risk.

Future Plans and Strategic Partnerships

Tribevest intends to allocate a portion of the seed funding to establish formal partnerships with investment platforms like Roofstock. This will enable users to make investments directly through their Tribevest accounts during the checkout process, though specific platforms are yet to be disclosed.

The company has primarily focused on refining its core functionalities, including LLC formation, management, and transaction processing.

Now, the eight-person team is prioritizing the recruitment of engineering and product management talent, alongside investments in marketing, in anticipation of a Series A funding round. A mobile app is planned for launch in the first half of 2022, reflecting a commitment to “community, communications, and collaboration.”