Enterprise Finance Software

LearnVest built cash flow-based financial planning software that was acquired by Northwestern Mutual for $375M. The software helped everyday Americans manage their finances, particularly those living paycheck to paycheck, and was licensed to large financial institutions.

Key Points:

• Core Technology:

  • Cash flow-based financial planning software
  • 8 patents on the software platform
  • Focused on basic bill payment and cash management vs traditional wealth building
  • Could ingest 60 data points about families to create personalized financial plans

• Target Market:

  • Served 95% of Americans who weren't wealthy
  • Specifically addressed the 78% living paycheck to paycheck
  • Started with female millennials, expanded to all households

• Business Model Evolution:

  • Started with content (free newsletter)
  • Added budgeting tools
  • Expanded to subscription-based financial advice
  • Ultimately sold to employers as an employee benefit

• Key Differentiator:

  • First to build planning software focused on cash flow vs wealth building
  • Connected users to certified financial planners
  • Provided "GPS for your money" - living/breathing financial plans
  • Software remained in demand by financial institutions due to complexity to build

• Exit Strategy:

  • Acquired by Northwestern Mutual to scale from 100k to 5M+ families
  • Leveraged NM's 8,000 financial advisors to distribute the platform