Powder, a wealthtech that creates generative AI agents to automate tasks, has closed a $5m seed funding round.
40 Silicon Valley firms invested in AI were responsible for the funding, including YCombinator, General Catalyst, Funder’s Club, Elefund, Litquidity Ventures, Script Capital and well-known technology executives Jon Xu and Bryant Chou.
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The funding will allow Powder to scale its technology, utilising AI that is rapidly transforming industries.
Powder saves wealth management firms time and money by parsing complex financial and estate documents in seconds and providing advisers with extracts. The AI agents are as accurate as a human, according to Powder, using its hallucination detection that can pinpoint important information in minutes, not hours, freeing advisers and analysts to focus on client service.
Furthermore, Powder’s AI agents can be deployed across multiple areas of the wealth management industry, from proposal generation to portfolio analysis.
In addition, the technology is secure with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Unlike ChatGPT, individual firms own and control the data, which means clients’ personal information is secure.
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By GlobalData“Artificial intelligence is the future of wealth management,” said Powder CEO Kanishk Parashar. “Businesses, regardless of size or scale, grapple with time management and how best to extend limited resources. With Powder, firms have a powerful tool to uplevel and future-proof their businesses. Firms with AI embedded in their culture will thrive.”
“Powder drives several front and back-end tasks, enabling us to optimise our time for more productive activities,” added Joe Mathews, wealth manager at Catalytic Wealth. “Their instantaneous review capabilities significantly enhance the speed and accuracy of our advice, and we are excited to see the platform evolve. Powder’s team uniquely understands industry and advisor needs making for a mutually beneficial partnership.”
