Carefull, an AI-powered financial safety platform, has successfully completed its Series A funding round, securing $16.5 million in investment. The round was led by Fin Capital and included participation from Bessemer Venture Partners, TTV Capital, Commerce Ventures, Montage Ventures, and Alloy Labs. This latest funding brings Carefull’s total capital raised to $19.7 million.
Carefull is a groundbreaking Protect-Retain-Transfer (PRT) provider within the financial ecosystem. It offers a technological solution that aids banks, financial advisors, and insurers in safeguarding their aging customers from financial scams and errors, while also helping these institutions retain assets, deposits, and build relationships with the next generation of family members. The platform actively scans various customer account types for over 50 financial and behavioral issues specific to aging, thereby detecting irregular activities, suspicious patterns, and more significant problems such as financial exploitation or signs of cognitive decline. Additionally, Carefull incorporates identity, credit, and home title monitoring, provides $1 million in identity theft insurance, a secure password and document vault, and a sophisticated Trusted Contacts system for banks to expand their influence within the family.
“There are now 45 million people across the country who are tasked with managing an aging loved one’s money, and older Americans lose $37 billion annually to fraud and money mistakes. The growing role of the financial institution to help families here cannot be understated,” said Todd Rovak, Co-founder and Co-CEO of Carefull.
“Banks, wealth advisors, and financial caregivers need a solution that customers actually want to use,” added Carefull Co-founder and Co-CEO Max Goldman. “Our approach of empowering and including the financial institution has led to tremendous growth over the past four years, so this new infusion of capital will help us reach even more aging Americans and their families.”
Over the past year, Carefull has expanded its presence, serving over 35 financial institutions and advisor groups. The Cooperative Bank in Massachusetts received recognition for its use of Carefull in protecting older Americans from financial fraud, winning a 2023 Community Commitment Award from the American Bankers Association. The platform has demonstrated its ability to reduce customer account churn and attrition by up to 10 times in partner banks while generating up to 60 new leads for wealth advisors.
“Carefull has emerged as an instrumental solution for financial caregivers and banks alike, and we’re proud to support the company through the next phase of their growth,” said Christian Ostberg, General Partner at Fin Capital. “As younger family members step in to manage their loved ones’ finances, there is an estimated $84 trillion in wealth transfer underway. Financial institutions and advisors are actively seeking out ways to help families through this time of transition while building relationships with their next generation of customers. Carefull’s full-stack financial safety suite is a critical step in solving many of the acute issues in the category, and we’re excited about where the team is headed.”
The newly secured capital will be allocated towards expanding onboarding and support for new partners, enhancing research and development efforts for better protection of older adults, and increasing capacity to comply with new state regulations aimed at providing more safeguards for aging Americans.
