Timeline — closes $8m Series A to revolutionise the financial advisory tech stack

TL;DR

• timeline has closed their $8m Series A round, led by MTech with co-investment from FNZ, and industry angels.
• They have skyrocketed this year-to-date, now on over £900m AUM, with 300% growth since we started advising them in Q1'21, having launched their proposition in Q2'20.
• Abraham, Founder & CEO, is one of the leading experts in the field.
• Mountside started advising Abraham earlier in the year to support combining his Timeline and Betafolio businesses into a joint proposition to take advantage of the clear synergies in offerings and target clients. Through this merger, it was clear that the company would be highly relevant for VC funding, and upon completing the business combination, we started supporting the company to prepare for its Series A.

Solving an industry-wide problem

The technology powering the financial advice industry is defined by a fragmented, archaic tech stack that leaves advisors paying for multiple platforms to deliver the service, and provide the advice, their clients expect.

Platforms rarely have the capability to communicate with each other since most lack the required functional APIs, leading to advisors re-performing manual data entry tasks across multiple systems.

Not only do firms struggle to present the results of alternative platforms in a logical way for the client, but they also suffer from evidencing suitability. The more systems they use, the bigger the headache for the compliance team.

The current tech stack is archaic, confusing, and expensive with typical costs of 0.36%, average MPS charges are equivalent to around a third of advice and planning fees.

The pain-killer for financial advisers, timeline, set out on a mission to join integral platforms together, undercutting the competition by up to 60% on cost, while offering a far superior service.

timeline’s capabilities:

• Retirement modeling and lifetime cashflow
• Deeply integrated planning and portfolio management experience, which eliminates the need for an average of 5 other tools (currently required in a financial advisor’s tech stack)
• Comprehensive tax and estate planning
• Digital fact-find
• Risk Tolerance and Capacity for Loss Assessment
• Automated portfolio tracking and analytics

Betafolio’s capabilities:

MV <> timeline

We loved the business due to its:

• Rapid growth — with users in seven countries (including the US, UK, Canada, Australia, and Ireland), timeline has sustained its 20% MoM AUM growth throughout the fundraising period, now with over £900m in AUM
• Best-in-class technology — timeline’s RITA API will continue to empower wealth management globally, and integrations with industry leaders such as SS&C Advent, Morningstar, Redtail, Intelliflo, Nucleus, 7IM, and IRESS serve as a testament to the quality of the platform.
• Increasing demand — the UK alone has over 14m baby boomers (with even more in the US) who are approaching retirement with little confidence. In the face of changing pension regulations, and data suggesting that those who take financial advice benefit significantly, we believe that financial advisors have a clear place in the industry and continue to add value to their clients, but are under increasing pressure from players such as Pensionbee.
• Founder — Abraham is an award-winning author, with his book, Beyond The 4% Rule, a regular podcast host with Retirementals and has written multiple industry papers.

We began working with timeline and Betafolio at the start of 2021 to support their proposition to the board to combine the complimentary products into a single business, to take advantage of the clear synergies. Through the work around metrics and market, it was obvious to us that this company was a true disruptor and there was a clear case to plan for a signficiant institutional round to build upon its momentum.

Abraham is a true expert, and the type of character that any VC would be lucky to join the board of; his light hearted approach and signature laugh always brightens meetings. Black entrepreneurs receive just 0.24% of Venture Capital in the UK, so as well, it is also a privilege to be able to continue our mission of helping channel VC funding to a more diverse group of founders.

Jon Steinberg, Partner, Mountside Ventures

We are on a mission to help 10 million people face their financial future and retirement with confidence by rebuilding the operating system for professional financial advice.

The team at Mountside took the time to understand our vision and our business. They introduced us to their extensive network of VCs in Europe and beyond, and they held our hands through every stage of the fundraising process. I can’t recommended them highly enough.

Abraham Okusanya, Timeline, CEO

Abraham is a highly capable entrepreneur with extensive experience in the IFA space. He has assembled a team with the skills and experience to deliver scalable technology and investment management solutions to an industry in need of modernisation. Advisers are looking for modern platforms that allow them to focus on customers. The Timeline and Betafolio products are meeting the needs of IFAs today.

Kevin McLoughlin, MTech Capital, Co-founder and Partner

If you’re a founder as ambitious as this team, we’d love to hear from you — submit details of your company here. We aim to respond to everyone within 48 hours!