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SyntheticFi Raises $13M, Surpasses $2B in Regulatory AUM
SyntheticFi is now used by more than 3,000 advisors across 300+ firms. Here's what we've learned along the way, and where we're headed next.
Joseph Wang
Key Takeaways
SyntheticFi raised $13M and crossed $2B in regulatory AUM, now serving 3,000+ advisors across 300+ firms, roughly 3x growth since the start of the year.
Strategies once reserved for institutions and ultra-high-net-worth clients, like box spreads and VPFs, are now accessible to everyday advisors through a single platform.
Advisors increasingly need flexible financing tools, not one-size-fits-all solutions, to weigh tradeoffs across each client's goals, assets, and circumstances.
The biggest shift: financing is moving into the planning process itself, evaluated alongside investment and tax decisions rather than treated as a standalone transaction.
New funding will go toward product development, deeper advisor partnerships, and team expansion.
Today, we're excited to share a few announcements.
We've raised $13 million in total from Y Combinator, NextGen VP, Social Leverage, The Compound Capital Fund, and other investors across the wealth management ecosystem.
We've also surpassed $2 billion in regulatory assets under management on the platform. SyntheticFi is now used by more than 300 advisory firms and 3,000 advisors nationwide, and has grown approximately 3x since the start of the year.
More than anything, we’re grateful to every advisor, firm, investor, and teammate who made this possible.
From our perspective, the momentum we’ve seen is also a reflection of how wealth management is evolving.
Increasingly, advisors are being asked to solve challenges that extend well beyond portfolio construction. Whether it's purchasing a home, funding a business opportunity, managing a concentrated stock position, or navigating a major liquidity event, clients are looking to their advisors for guidance on a wider range of financial decisions.
That shift is the reason we started SyntheticFi, and continues to shape our company culture, platform, and the level of service we deliver.
The Problem We’re Solving
Many clients have significant wealth tied up in investment portfolios, private company stock, or other assets.
However, when they need liquidity, the traditional options have often been expensive, subject to changing interest rates, and less tax-efficient when the goal is accessing cash rather than making a new investment.
In those situations, strategies like box spreads and variable prepaid forwards (VPFs) can be powerful tools. But navigating their nuances, comparing them to alternatives, determining costs, and managing implementation often requires specialized expertise and infrastructure.
As a result, these solutions could generally only be used by institutions and ultra-high-net-worth investors.
We believed there was an opportunity to change that.
Our goal was to build a platform that made sophisticated financing strategies easier to access, evaluate, and deploy. And, that could help clients reduce borrowing costs, improve tax efficiency, and create greater financial flexibility.
What We've Learned Along the Way
Since 2023, we've had the opportunity to work alongside hundreds of advisory firms and see firsthand how these strategies are being used.
In some cases, that’s meant helping clients purchase a home or replace an existing mortgage without disrupting a long-term investment strategy.
In others, the focus has been on securing bridge financing for a real estate transaction or business opportunity, refinancing higher-cost debt, or managing a concentrated stock position through VPFs.
However, what connects all of these examples is the need for flexibility.
Advisors aren't looking for a one-size-fits-all solution.
They need tools that help them weigh tradeoffs, and determine which approach best aligns with a client's goals, assets, and circumstances.
Our Most Important Finding
The most notable trend we've observed is how financing is increasingly being incorporated into the planning process itself.
Historically, borrowing was often viewed through a narrow lens: securing liquidity when it was needed. Today, many advisors are evaluating financing alongside investment, tax, and wealth planning decisions to determine the most effective path forward for each client.
In the right situations, that can mean accessing capital at a lower cost, improving tax outcomes, preserving long-term investment exposure, or avoiding the need to sell appreciated assets.
Rather than treating financing as a standalone transaction, more firms are incorporating it into a broader strategy designed to support a client's long-term objectives.
We've seen this approach gain traction across the firms we work with, and believe it represents one of the most significant ways that wealth management is changing.
Looking Ahead
Over the last three years, we've had the opportunity to partner with thousands of advisors. Their insights, feedback, and real-world experience have shaped SyntheticFi in countless ways, and will continue to inform where we go next.
The recent funding gives us the ability to invest more heavily in product development, deepen our partnerships across the advisor ecosystem, expand our team, and further support the growing number of firms we serve.
To every advisor, firm, customer, investor, and member of our team, thank you for being a part of our journey.
We're excited for the road ahead, and look forward to continuing to build alongside the people who got us here.
