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KapitalWise
AI powered insights for financial institutions
New York, NY
Data/Analytics
Financial Services
KapitalWise is a FinTech company providing client relationship solutions to financial institutions to enable them to increase efficiency and user experience. Our platform analyzes data from a variety of sources with the goal of identifying life, financial and credit events to help financial institutions engage with customers at the moment they need the service the most.
$324,392
raised
465
Investors
$15M
Valuation
$1.47
Price per Share
$249.90
Min. Investment
Common
Shares Offered
Equity
Offering Type
$433K
Offering Max
0
Days Left
This offering ended on May 01, 2021 and is no longer accepting investments.
Reasons to Invest
We’ve seen YoY revenue growth of 150% from 2018-2019, and have secured early contracts with Bank Of America, Standard Chartered Bank, and ABSA in addition to partnerships with Finastra and ICBA
A team with over 150 years of combined experience guiding FinTech development, data science, and business development
The market for FinTech (already $127.66B globally) is predicted to become a major disruptor for the wider financial market space
Overview
Taking financial institution relationships into the digital age
With KapitalWise, financial institutions will be able to seamlessly integrate their customer relationship operations with a pool of relevant information and indicators that will increase efficiency and overall sales while improving the customer experience. So far the company has signed agreements with major banks including Bank of America and Standard Chartered Bank UK and ABSA (formerly Barclays South Africa). The company also has multiple letters of intent from mid-market banks within the US and has signed partnership agreements with ICBA and Finastra.
The finance industry looks at FinTech as the obvious progression for the next market segment to take off, with many of the largest financial institutions hedging their futures by investing in FinTech. COVID-19 will change the way people bank forever and financial institutions will ‘double down’ on digital solutions
The Problem
8 in 10 consumers would switch financial institutions for a better experience.
As Millennials and Generation Z come of age, they’re expecting a seamless user experience on par with all of the other technology they are used to. The financial institution industry’s evolution into the digital era has sparked plenty of growth and increased efficiency, but we believe it has failed to find a way to improve those client relationships that are valued so highly now.
This has resulted in a significant first-year churn rate for new customers hovering around 20-25%. In order for financial institutions to truly keep up with the modern-day customer, we believe they need to customize and personalize their customer experience - empowering the individuals to feel in charge of their finances.
The Solution
The KapitalWise SaaS platform uses AI to hyper-personalize customer engagement
KapitalWise has built a platform that aims to help financial institution relationship managers elevate their work, with new and relevant insights into their client’s financial life and recommendations for how to best help customers achieve their financial goals.
Managers can use this platform and their improved understanding of their clients to upsell and cross-sell appropriate products and services.
Financial institutions can also use our platform for marketing and other insight-driven operations.
We’ve created a way to extract behavioral insights from financial information on a massive scale. We believe that with the insights we can provide, financial institutions will be able to create the customer experience that everyone wants.
The Market
The $1.5T finance and insurance industries are ripe for disruption
The FinTech industry is already a major contributor to the global financial sector, but Goldman Sachs analysts have predicted that it may eventually disrupt up to $4.7T of the revenue now stemming from traditional financial services.
Credit Unions and Banks are hyper-aware of this trend, and how important these tech solutions have become to their businesses: 60% of credit unions and 49% of banks say they believe that a partnership with a FinTech firm is important.
And among the big players like Goldman Sachs and Citigroup, diversifying some of their investments in FinTech has become a way to future-proof their portfolio.
Our Traction
Over $500K in seed funding from investors, and Techstars accelerator
In just a few years since our founding in 2017, KapitalWise has graduated from the Barclays Techstars and Fintech Innovation lab and received over $500K from investors and accelerators like Techstars, Breega Capital, and the Independent Community Bankers of America (ICBA).
We already have paid evaluation contracts signed with Bank Of America, Standard Chartered Bank UK and Barclays South Africa (ABSA). Additionally we have a Letter of Intent from one of the top US digital banks, as well as innovation and sales partnership agreements with Finastra, ICBA, and Barclays Rise.
From 2018 to 2019 we’ve seen year-over-year revenue growth of over 150%.
What We Do
Our AI-enabled platform detects a consumer’s characteristics and preferences to help their financial institution
KapitalWise has developed an artificial intelligence (AI)-enabled platform that analyzes transactional data with the goal of detecting a consumer’s characteristics and preferences, predicting their future cash flow, and detecting changes in their financial condition. By predicting and recording these events, we help financial institutions identify and link customers to appropriate products and services. This data can also be used by financial institutions to better help their customers reach their financial goals.
Our algorithm uses proprietary models, with inputs from first-party bank data (call center, bill pay, and customer profile data), KapitalWise-gathered open web data (weather information and census data), and third-party data (credit scores).
With the combination of all of this, we’ve been able to open new doors to understanding consumer behavior.
The Business Model
B2B model with volume-based pricing
We are pursuing a B2B model for our distribution.
By utilizing volume-based pricing we charge $1.80 to $3.00 per account per year, as well as additional fees for FICO and credit inquiry access.
We also charge an installation fee for onsite installations which range from $150K to $300K.
How We Are Different
A proprietary algorithm that looks forward
KapitalWise utilizes a proprietary algorithm powered by AI and ML that actively detects and predicts upcoming events and changes in the lives of the bank’s customers, and in doing so, enables financial institutions to fit their sales and management tactics to each individual.
We have a unique third party product detection algorithm that helps financial institutions detect third party products subscribed to by their customers.
We believe that our technology is truly more effective than everything else on the market.
The Vision
The future of digital relationships for financial institutions
In the next five years, our goal is to become the market leader in financial institution customer engagement.
We know that the future of financial institution relationships is digital, and with an accessible, affordable (to mid-market banks), and highly effective platform, we believe that we can lead the way.
OUR LEADERSHIP
Experts in financial product development, data science, and machine learning
Sajil Koroth is a serial entrepreneur who has left his mark on brands like Oracle and LearnVest (where he was the lead engineer), and founded two FinTech startups in New York.
Raymond Tuckler was a founding member of the OnDeck sales team, personally originating $150M in new business. Before KapitalWise, he was the Director of Sales at Exponea.
Paul Stamoulis is an experienced banker and investor, and a veteran of retail and investment banking. Before KapitalWise, Paul held various senior roles at ScotiaBank and TD Bank.
Why Invest
An excellent product backed by an experienced team in an in-demand market space
The FinTech market has become one of the most interesting and important sectors of finance in recent years, as everyone is looking for the next piece of tech that can give them an edge over their competitors.
We believe our proprietary algorithm is going to be a game-changer for the financial institution relationship manager.
Our team has done this before and is tapped into this industry. With three paying customers — including ABSA (formerly Barclays Africa Group) — we believe we have proved that our product is filling a gap in the market.
In the Press
Independent Banker
What do fintechs say is next for the industry?
AlleyWatch
This NYC Startup Empowers Financial Institutions to Predict Customer Need With AI
Finastra
Finastra powers retail banking innovation with four new fintech apps on FusionStore
Offering Summary
Company | : | KapitalWise, Inc. |
Corporate Address | : | 43 West 23rd Street, New York, NY 10010 |
Offering Minimum | : | $9,998.94 |
Offering Maximum | : | $432,997.32 |
Minimum Investment Amount(per investor) | : | $249.90 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 6,802 |
Maximum Number of Shares Offered | : | 294,556 |
Price per Share | : | $1.47 |
Pre-Money Valuation | : | $14,988,458.10 |
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
COVID Relief
This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary COVID-19 regulatory relief set out in Regulation Crowdfunding §227.201(z).
Expedited closing sooner than 21 days.
Further, in reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and August 31, 2020, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal not direct a transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).
Voting Rights of Securities Sold in this Offering
Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
Investment Incentives and Bonuses*
Time-Based:
Friends and Family Early Birds
Invest within the first 72 hrs and receive an additional 20% bonus shares.
Very Early Bird Bonus
Invest within the first week and receive an additional 15% bonus shares.
Early Bird Bonus
Invest within the first two weeks and receive an additional 10% bonus shares.
Amount-Based:
$500+ | Silver Tier
Access to KapitalWise quarterly investor update emails to stay up to date on new product launches, partnerships, customer lists, and team updates.
$1,000+ | Gold Tier
KapitalWise T-Shirt + Access to KapitalWise quarterly investor update emails + 5% bonus shares.
$5,000+ | Platinum
Gold Tier Perk + 15% bonus shares.
$10,000+ | Diamond Tier
Gold Tier Perk + 20% bonus shares.
The 10% Bonus for StartEngine Shareholders
KAPITALWISE, Inc., will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $1.47/ share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $147. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
*All perks occur when the offering is completed.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative.
Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$66,893.00
USD
$174,544.00
USD
Cash And Cash Equivalents
$9,893.00
USD
$60,544.00
USD
Accounts Receivable
$57,000.00
USD
$0.00
USD
Short Term Debt
$26,630.00
USD
$14,033.00
USD
Long Term Debt
$197,850.00
USD
$147,850.00
USD
Revenues And Sales
$79,000.00
USD
$30,800.00
USD
Costs Of Goods Sold
$0.00
USD
$0.00
USD
Taxes Paid
$0.00
USD
$0.00
USD
Net Income
-$197,123.00
USD
-$110,187.00
USD
Risks
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Updates
It’s Now Or Never!
about 1 year agoHey,
In case you missed yesterday’s email, I want to warn you that this will be your absolute LAST and FINAL chance to invest in our crowdfunding campaign before the deadline...
If you've been putting it off then here it is...
Invest in Kapitalwise before the door closes for good!
Let’s finish strong!
Best,
Team Kapitalwise Inc.
The clock is ticking, last chance to invest in this offering
about 1 year agoThe Kapitalwise team is extremely appreciative of the support and investment so far, with over $315,000 raised. This is the last chance to invest in this offering as the campaign is about to expire.
Thanks,
Team Kapitalwise
Kapitalwise joins Plug and Play Fintech!
about 1 year agoHi,
Excited to share the news. Kapitalwise has been invited to participate in the Plug and Play Fintech accelerator. Plug and Play Fintech was launched in 2015 and has accelerated unicorns such as BigID.
https://www.plugandplaytechcenter.com/fintech/
Your last chance to invest in this round
This campaign will end in 3 days and this is the last chance to invest in Kapitalwise before the valuation goes up. So, to the investors who haven’t invested yet, this is a great time to hurry up and take action now!
Thanks,
Team Kapitalwise Inc.
75% Funded, Campaign Ending on 30th April
about 1 year agoWe have been blown away by the positive response to our equity crowdfunding campaign! Due to the momentum, we have decided to end this campaign on April 30th.
Hurry up and invest in the next generation customer engagement automation platform for financial institutions.
Thanks,
Team Kapitalwise
Launch AI customer engagement for wealth management. Ex UBS executive join the team
about 1 year agoHi,
Kapitalwise extends its AI customer engagement platform to wealth management and independent RIAs.
With nearly two-thirds of millennial investors preferring an online access point for their investment advice, not having a robust digital offering will be a long-term detriment to even the most qualified and respected investment advisors.
Koin™️ is a digital wealth management tool designed to deepen traditional wealth management relationships.
Ex UBS and Morgan Stanley executive, Sean Parker who recently joined Kapitalwise as the Chief Strategy Officer will lead this new initiative for Kapitalwise.
Thanks,
Team Kaptialwise
Kapitalwise white paper: Balancing The Books of Customer Expectations
about 1 year agoHow do we exceed customer expectations in the most unexpected ways?
Do you ask them directly or make a random guess and pray for a strikethrough?
Financial institutions aren't fully digital or traditional. Due to diverse consumer segments, forecasting consumer needs calls for a balance between the two.
Here’s an easy-read white paper to help FI marketers get that grip on customer expectations and set better marketing priorities for 2021.
https://kapitalwise.com/whitepaper/Balancing_The_Books_of_Customer_Expectations.pdf
Thanks,
Team Kapitalwise
$305K Raised out of $433K target
over 1 year agoHi,
We are excited to announce that as of 03/24, we have raised $305K out of our $433K goal. The campaign has gained 419 investors and 1K followers, with an average investment amount is $690.00.
If you are considering an investment, this might be the right time to do so.
Thank you for the continued support.
Thanks,
Team KapitalWise
Notice of Funds Disbursement
over 1 year ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, KapitalWise has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in KapitalWise be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
KapitalWise invited to join United Nation's Sustainable Development Goals program for financial inclusion
over 1 year agoHi All,
We are excited to announce that KapitalWise Inc. has been invited to join The SDG Impact Accelerator (SDGia) program for financial inclusion.
SDGia is a novel initiative that leverages the SDGs to serve complex challenges faced by forcibly displaced populations and Least Developed Countries (LDCs) by funneling highly innovative solutions and convening private and public stakeholders around specific development challenges. SDG is backed by organizations such as the Bill & Melinda Gates Foundation and the Republic of Turkey.
Thanks,
Team KapitalWise
Notice of Funds Disbursement
over 1 year ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, KapitalWise has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in KapitalWise be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
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