The Impact of Divorce on Families and Financial Strain

Jacklyn Rome observed the difficulties families face during divorce at the age of 14, particularly the conflicts arising from financial discussions both during and following separation, and the effect on children.

This early experience profoundly influenced her. Later, having successfully led new product introductions at companies like Uber and Blue Apron, Rome conceived the idea for her own venture, Ensemble.

Ensemble's Launch and Seed Funding

The expense tracking application was initially released on the App Store in 2020, with a core objective of lessening friction between co-parents and safeguarding the well-being of their children.

Ensemble is now emerging from its initial development phase, having secured $3 million in seed funding from investors including TTV Capital, Lerer Hippeau, and Citi Ventures.

The primary goal of Ensemble is to enhance the lives of co-parents and their children by providing a simplified method for managing shared expenses.

The Financial Realities of Co-Parenting

“A significant number of co-parents either manage finances informally or depend on child support payments,” Rome explains. “However, child support typically only covers essential needs like food, shelter, and clothing, representing only a portion of the total cost of raising a child.”

The remaining expenses – encompassing medical care, extracurricular activities, and transportation – are frequently debated between co-parents through text messages and spreadsheets.

A six-month pilot program for Ensemble commenced in January 2020, coinciding with the launch of the credit-focused version of the app.

In April 2020, a dual-functionality version was released, enabling two parents to link their respective accounts.

User Growth and Expense Tracking

Since its launch, Ensemble has experienced “substantial organic growth and referrals” from its user base, according to Rome. Users are, on average, tracking over $1,000 in shared monthly expenses for their children.

Approximately 30% of Ensemble’s downloads resulted from organic discovery within the App Store.

“Even in amicable divorce situations, finances are frequently the primary source of disagreement between divorced parents. In more challenging cases, money can be wielded as a tool for control by individuals experiencing heightened emotional distress and lacking alternative solutions,” Rome stated.

“Our aim was to develop a product that facilitates calmer communication regarding shared finances and addresses the complex needs of separated parents.”

Monetization and Future Expansion

Currently, the application is available without charge. Ensemble intends to introduce monetization strategies utilizing the funds from its seed investment.

The company plans to eventually implement a paid subscription model. Long-term plans include expanding beyond expense tracking to offer a range of financial products, including banking solutions like shared credit cards with customizable spending limits, as Rome shared with TechCrunch.

“Our ultimate objective is to ensure that children of divorced parents are not disadvantaged financially when planning for their future,” she added.

Origins and Support from Citi Ventures

Rome established Ensemble while serving as an Entrepreneur in Residence (EIR) at Co-Created, a venture studio located in New York, with backing and funding from Citi Ventures’ D10X program.

“Citi identified a key challenge: acquiring new customers is difficult for banks, as individuals rarely switch financial institutions,” Rome explained. “Divorce, however, is a life event that often prompts people to change banks, leading us to consider the financial difficulties experienced during divorce.”

Luis Valdich, managing director of venture investing at Citi Ventures, noted that the bank has been “monitoring the evolving financial requirements of individuals” in response to societal shifts, while also seeking investment opportunities in startups addressing unmet needs.

“A growing need exists for divorced or separated parents to effectively track and manage shared expenses,” Valdich said. “Ensemble addresses this by providing a user-friendly, transparent, and empathetic solution for modern co-parents, reducing the need for constant communication. We found its user experience to be significantly better than existing alternatives.”

Valdich also indicated that Citi Ventures consistently seeks opportunities for collaboration with its portfolio companies.

Investor Perspectives and Future Outlook

TTV Capital Partner Mark Johnson highlighted his firm’s two decades of experience investing in fintech and the clear demand “for digital tools that simplify communication and finances.”

He described Ensemble’s app as “a streamlined and intuitive platform” that meets the needs of co-parents.

Note: In October of 2021, the company rebranded as Onward.