Careers at Addepar

Mission

Addepar’s mission is to power the global financial system to efficiently allocate capital and mitigate risk.

History

Joe Lonsdale had already launched a successful startup – Palantir, a big data analysis software firm. In 2009 he was inspired to start another venture. The onset of the recession the year before had opened his eyes to a significant problem in the financial sector. Specifically, he felt that the lack of communication between big banks led to a wide variety of formats, resulting in major inefficiencies.

Lonsdale decided he wanted to create a solution that would reduce the number of software systems, providing a single platform for simplicity. He developed a prototype and conducted research by working with small financial service providers such as family offices and RAAs (investment advisors). They would test out the solution and provide feedback on what worked and what did not.

When Lonsdale felt comfortable with the product he and his team devised, he founded a company to market it, called Addepar. The name comes from a quote in Ovid’s “Metamorphoses“ that means “Add a little to a little and you’ll have a great amount.” In 2011 the firm was able to raise $15.84 million in a Series B round of funding. It now serves financial institutions of all sizes.

Benefits at Addepar

Business model of Addepar

Customer Segments

Addepar has a niche market business model, with a specialized customer segment. The company primarily targets its offerings at firms in the financial services sector, including wealth advisors, private banks, large financial institutions, wirehouse teams, funds, and fund administrators.

Value Proposition

Addepar offers three primary value propositions: convenience, performance, and brand/status.

The company offers convenience to customers by simplifying portfolio analysis. While many similar platforms only provide a linear view, its solution enables users to view portfolios horizontally, vertically, and in-depth. This provides a comprehensive, accurate picture, allowing clients to better understand the interplay of various assets and how day-to-day events impact the portfolio.

The company has demonstrated strong performance through tangible results for clients. High-profile examples of positive outcomes include the following:

  • Rincon Advisors used Addepar’s solution to view more data from more asset classes more quickly, enabling it to expand the number of people it served without hiring more staff
  • Perigon Wealth Management used Addepar’s solution to aggregate and reconcile data from numerous custodians on a daily basis, enabling it to increase scalability and its pace of growth
  • Litvak & Co. used Addepar’s solution to support the multi-asset class and multi-currency portfolios of its customer base, enabling it to increase functionality in a short period of time

The company has established a strong brand as a result of its success. It bills itself as the leading financial technology platform for the investment management industry. It works with more than 160 clients representing over $400 billion assets under management. Its prominent customers include CAM Capital, Harmony Capital, and Silicon Valley Bank. Lastly, it has won many honors, including recognition as the “Best Financial Management Solution“ by the SIIA Codie Awards (2016) and as one of the "Top 10 Most Innovative Companies in Personal Finance" by Fast Company magazine (2015).

Channels

Addepar’s main channel is its business development team. The company promotes its offering through its website, social media pages, and informational events. Its most prominent event is “The Path to Impact Investing“, an educational and networking program it hosts across various U.S. cities.

Customer Relationships

Addepar’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees.

That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Addepar’s business model entails maintaining and updating its platform for customers.

Key Partners

Addepar does not maintain a formal partnership program. No information is available regarding the company’s key partners.

Key Resources

Addepar’s main resource is its proprietary software platform, which serves over 160 customers.

It depends greatly on human resources in the form of software engineers, data analysts, and designers to work on the platform.

Lastly, as a startup it has relied heavily on funding from outside parties, raising $65.84 million from 21 investors as of May 2014.

Cost Structure

Addepar has a cost-driven structure, aiming to minimize expenses through significant automation.

Its biggest cost driver is likely sales/marketing, a fixed cost.

Other major drivers are in the areas of customer support/operations and administration, also fixed costs.

Revenue Streams

Addepar has one revenue stream: the fee it charges for analysis services on its platform. The fee is based on how much data is being reviewed in a given period; it typically starts at $50,000 but can rise as high as $1 million, depending on the investment and money variables involved.

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