Monarch Raises Millions - Mint's First PM Launches Money Management Platform

Monarch Secures $4.8 Million in Seed Funding for Financial Planning Platform

Monarch, a platform centered around subscription-based financial planning and management, has successfully raised $4.8 million in seed funding. This investment aims to bolster the company’s efforts in assisting individuals with their financial well-being.

Investment Details and Company Background

Accel spearheaded the funding round, with additional participation from SignalFire. This brings the total funding secured by the Mountain View-based, fully distributed startup since its 2019 launch to $5.5 million.

The company’s co-founder and CEO, Val Agostino, previously held the position of first product manager at Mint.com. His experience there revealed a significant need for more comprehensive financial tools.

Addressing the Need for Proactive Financial Planning

Agostino observed that individuals possessing a solid understanding of financial principles often required solutions extending beyond simple tracking and budgeting. They needed assistance in planning for the future and evaluating the implications of various financial choices.

Monarch is designed to fulfill these requirements by providing software that simplifies the process of defining financial goals and developing a detailed plan to achieve them.

The platform also facilitates progress tracking against the established plan and automatically adjusts strategies as financial circumstances evolve – a feature considered crucial given the dynamic nature of personal finances.

Subscription Model and Data Privacy

Monarch became available outside of private beta in early 2021, offering applications for web, iOS, and Android platforms. It operates on a pricing structure of $9.99 monthly or $89.99 annually.

A deliberate decision was made to avoid reliance on advertising revenue or the sale of customer financial data. This commitment reflects a core principle of prioritizing user interests.

Agostino asserts that a subscription-based model best supports this ethos, aligning the company’s objectives with those of its users. Since its public launch, the platform has experienced approximately 9% weekly growth in its paid subscriber base.

Impact of the Pandemic and Market Trends

The launch of Monarch coincided with the onset of the pandemic, a period marked by increased financial uncertainty. This led many individuals to utilize the platform’s forecasting capabilities to assess different scenarios, such as job changes or relocation.

Recently, TechCrunch reported on BodesWell, a company with a similar focus, collaborating with American Express to create a financial planning tool for cardholders.

Differentiating Factors: Comprehensive Financial Management

Agostino highlights the similarities between Monarch and BodesWell, noting that both platforms assist users in mapping out financial plans for the future.

However, Monarch distinguishes itself by offering a complete suite of personal financial management (PFM) tools, including budgeting, reporting, and investment analysis.

This comprehensive approach allows Monarch to provide more holistic guidance, helping users stay on track with their financial plans and adapt them in real-time as needed, due to its connection to a user’s complete financial picture.

Investor Perspective: A Modern Approach to Financial Tools

Accel’s Daniel Levine shared that he was still using Mint, despite recognizing its limitations, until he discovered Monarch.

Levine points out that the financial product landscape has significantly expanded in the last decade, with increasing numbers of individuals utilizing brokerage and cryptocurrency accounts.

He believes Monarch stands out due to its subscription model and commitment to user-centricity.

Levine criticizes the practice of suggesting suboptimal financial products for user benefit, a common issue with ad-supported platforms. Monarch is designed to avoid such conflicts of interest.

Infrastructure for Complete Financial Oversight

Furthermore, Levine emphasizes Monarch’s ambition to serve as a central infrastructure for managing all aspects of a user’s finances.

This necessitates tracking checking accounts, credit cards, brokerage accounts, real estate holdings, and cryptocurrency investments. Monarch is dedicated to providing this comprehensive oversight, addressing a challenging problem and establishing a clear differentiator in the market.