ImpactAlpha, November 23 — The Chicago-based fintech EarlyBird is on a mission to help low- and middle-income American families build generational wealth. Its mobile app, launched a year ago, allows parents to receive money from relatives and others on behalf of their children to invest in custodial investment accounts.
Of the more than 20,000 parents and guardians who have set up EarlyBird accounts, more than half have household incomes of less than $100,000 a year, EarlyBird’s Jordan Wexler told ImpactAlpha, and most are people of color. Parents pay $1 monthly per child to gain access to EarlyBird’s managed portfolios.
Bridging the wealth gap
The seed round was led by Reddit co-founder Alexis Ohanian’s venture capital firm, Seven Seven Six. “I got a savings bond from my great aunt when I was born in 1983,” said Ohanian. “We need an onramp to modern wealth creation for the next generation.”