Pave Finance, a provider of AI-powered, institutional-grade personalized wealth management software, has raised $14 million in seed funding.
Founded by veterans from Goldman Sachs, JP Morgan, and Morgan Stanley, Pave enables investment advisors to customize, personalize, and automate portfolio construction and management. Wealth advisors reportedly spend an average of 18 hours a week managing portfolios, a commitment that hampers their ability to scale while offering client customization.
The startup’s proprietary software platform addresses this challenge by integrating an alpha scoring algorithm, optimization engine, and trading platform, delivering personalized portfolios aligned with each client’s goals and risk profile. Originally developed as quantitative models managing billions in assets by Pave’s investment team, these models have been transformed into a self-service software platform utilizing machine learning and predictive analytics, granting advisors access to decades of investment expertise.
As market conditions change, Pave generates buy and sell recommendations, executes trades, and constructs customized portfolios that align with client objectives while managing risk according to chosen benchmarks. Over the last 15 years, the foundational model behind Pave’s software has outperformed the S&P 500 by an average of 285 basis points annually. Since launching the software and integrating with major custodians, Pave has started deploying it to independent investment advisors managing over 60,000 accounts and more than $18 billion in client assets.
Christopher Ainsworth, CEO of Pave, states, “Pave is transforming how portfolios are built, personalized, and managed. This new injection of capital enables us to accelerate innovation, expand our capabilities, and further support advisors in delivering truly personalized investment outcomes at scale.”