Facet is pushing forward with its mission to "build the future of financial advice" with a new multimillion-dollar capital infusion.
The tech-based financial planning firm has raised an additional $35 million in funding, led by Multiplier Capital, which it says will be aimed at furthering its technological development, enhancing member services, and driving long-term growth efforts.
“This funding isn’t just about growth; it’s about reinforcing our commitment to helping our members live for today and plan effectively for tomorrow,” Anders Jones, chief executive officer at Facet said in a statement.
Jones emphasized that combining innovation with a focus on customer needs has been central to the company’s success. In line with that, the company recently forged an alliance with wealth.com, another fintech startup, aimed at moving the needle on the widespread estate-planning gap among Americans.
The funding by Multiplier Capital supports Facet’s mission of providing affordable and unbiased financial advice, with a subscription-based model that has reportedly attracted over 14,000 households across the US. The company’s unique approach targets individuals often overlooked by traditional financial services, offering personalized financial guidance without the constraints of asset-based fees.
Since its founding in 2016, Facet has raised approximately $210 million, which includes a supersized $100 million funding round in 2022. Its platform provides comprehensive financial advice at a flat fee, covering a wide range of financial planning needs.
“We are excited to collaborate with Facet, whose leadership and team are setting new standards in the financial planning space,” said Thomas Walton-Cale, managing director of Multiplier Capital. "Their dedication to innovation and a member-focused approach via a flat fee has proven to disrupt the AUM model that has been accepted as a standard for far too long."
While the 1 percent AUM model isn't exactly going away soon – many advisors have adapted by adopting tiered models or rolling more services into their 1 percent fee packages – Facet's price structure speaks to an ongoing pushback against the conflicted nature of the traditional approach.
“We strongly believe that the commission- and AUM-based fee approaches create an inherent conflict of interest and do not put a client’s best interests first,” Jones told InvestmentNews in a recent interview.
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