unest Raises $26M Series B to Revolutionize Kids' Savings

UNest Secures $26 Million in Series B Funding

UNest, a fintech company specializing in financial planning resources for parents investing for their children’s future, has announced the completion of a $26 million Series B funding round. The investment was spearheaded by The Artemis Fund.

This funding round saw participation from both existing and new investors. Northwestern Mutual Future Ventures continued its support, while Franklin Templeton, Launchpad Capital, AltaIR Capital, OneWay Ventures, Unlock Venture Partners, and Jim McKelvey, co-founder of Square, joined as new investors.

Expansion Plans and New Features

The recent funding elevates UNest’s total investment to $40 million. These funds will be allocated towards the development and launch of innovative features, notably UNest Legacy.

UNest Legacy will empower parents to purchase individual stocks and cryptocurrencies within the accounts they manage for their children. Currently, the platform limits investments to Exchange Traded Funds (ETFs).

CEO and founder Ksenia Yudina indicated to TechCrunch that UNest Legacy is anticipated to become available in the second quarter of the following year. This launch is a direct response to user requests for greater control over their investment portfolios and increased access to cryptocurrency options.

Strategic Partnerships and Portfolio Diversification

A collaboration with Franklin Templeton is planned to introduce Environmental, Social, and Governance (ESG) portfolios to UNest users in early next year, as stated by Yudina.

This expansion into individually managed accounts and educational resources signifies a growing trend among investors who desire active management of their holdings, aligned with their individual objectives and values.

Growth and Future Outlook

This Series B announcement follows a period of substantial growth for UNest. In 2021, the company achieved several milestones:

• Registered as a broker-dealer.
• Completed the acquisition of two companies.
• Increased its user base by 300,000, reaching a total of 400,000 users.

UNest aims to reach 1 million users by the end of the next year, according to Yudina.

The company is also exploring potential long-term expansion into the European market. Furthermore, it is evaluating new business-to-business (B2B) opportunities, such as offering UNest accounts as an employee benefit.

Company Origins and Mission

Ksenia Yudina, holding both a CFA and an MBA, founded the Los Angeles-based company in 2018. Her prior experience as a financial planner for high-net-worth individuals motivated her to create a solution to help families save and avoid accumulating excessive debt.

UNest’s initial product, an application for both iOS and Android devices, was launched in February 2020. Originally focused on tax-advantaged 529 college savings plans, the company now offers custodial accounts.

These custodial accounts provide parents with greater flexibility in saving for a wider range of their children’s future needs, as explained by Yudina.

Addressing Financial Literacy and Accessibility

Yudina emphasizes that a primary obstacle for many parents is a lack of awareness and understanding of available savings solutions. UNest aims to address this through its accessible and user-friendly platform.

“The process is remarkably straightforward, requiring only five minutes and no complex paperwork,” Yudina stated. “Our branding, marketing efforts, and the social aspect – encouraging involvement from friends and family – also contribute to our success.”