Giving While Living


May 22, 2023


Cindy Grazer


May 22, 2023


Cindy Grazer


Trillions of dollars in wealth are set to cascade over the coming decade from 73m baby boomers, the youngest of whom will turn 60 this year. But while the greatest intergenerational wealth transfer in US history is in motion, only the most wealthy heirs will be on a path to be financially prepared to retire. High net worth boomers constitute only 1.5% of total householders, but will make up 42% of the volume of expected transfers through 2045. And the inherited spoils are set to be distributed just as unevenly as wealth and income today, permissible in part due to the U.S tax code.

The notion of “intergenerational unfairness” has made some headlines this week with governments increasingly looking at policies and programs to narrow some of the economic disparities with the wealth transfer in motion. Connecticut’s Baby Bonds program, for instance, pledges a $600m plan to set up $3,200 as deposits into baby trust funds, to be invested over the course of their early adulthood. In recent years, new financial technologies have also emerged to close this gap. From mobile payment technologies giving first-time access to basic financial services, to new credit systems that underwrite previously overlooked borrowers.

Against cooler winds today, baby boomers have been some of the greatest beneficiaries of the last decade of surging home values and price growth. Until the wealth transfer begins in earnest, we can only guess which Boomer will be driving the sales at the fine art auctions in New York this week.

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Portfolio News

African B2B e-commerce startup Sabi announces Series B raise - The informal trade sector makes up most of Africa’s $1t retail market. According to people with knowledge of the company’s dealings, the startup is posting mind-boggling growth numbers for a startup that has just been in business for two-and-the-half years. Read more

Empowering advertisers: Pemo improves its corporate cards acceptance - Holders of the Pemo cards can now seamlessly make payments to popular services such as Google AdWords, Microsoft Azure, Meta and Linkedin. Additionally, the Pemo pre-funded cards facilitate payments on a wide range of car rental sites, hotel chains and e-Commerce sites. Pemo enables data-driven marketing teams to gain real-time visibility and exercise control over their advertising spend. This, in turn, can empower them to create and deliver exceptional campaigns and achieve superior outcomes. Read more

Lido launches v2 and releases staked Ethereum for withdrawals - Market-leading liquid staking platform Lido has enabled staked ETH withdrawals. The move came as Lido launched the V2 upgrade live to mainnet on May 15. As the most important upgrade to the Lido protocol to date, Lido V2 significantly improves the Ethereum staking experience whilst pushing the Lido protocol further down the road towards increased protocol decentralization. Read more

Maker launches Spark lend protocol - To enhance control and encourage the adoption of Dai, Maker launched Spark Lend, its proprietary downstream lending protocol. This innovative protocol capitalizes on Maker's unique set of tools to effectively manage the supply of Dai and maintain a stable borrowing rate, which currently stands just above 1%. Read more

Giving While Living

The greatest wealth transfer in history is here, with familiar (rich) winners - An intergenerational transfer of wealth is in motion in America — and it will dwarf any of the past. Of the 73m baby boomers, the youngest are turning 60, the oldest are nearing 80, and are now beginning to die in larger numbers. Of the $84t projected to be passed down from older Americans to millennial and Gen X heirs through 2045, $16t will be transferred within the next decade. Read more

Connecticut’s $600m plan to narrow wealth gap: give kids trust funds - A once-radical proposal to narrow the vast racial wealth gap and other economic disparities is poised to achieve a key milestone in the US: actual funding to put programs in place. Connecticut Governor Ned Lamont and fellow Democrats in the legislature are about to announce a 12-year, $600m deal to launch a baby bonds program for newborns starting in July. Read more

Industry News

IRS weighs creating a government-run tax-prep option - The Biden administration is considering creating a government-run alternative to TurboTax and H&R Block, drawing resistance from Republicans and companies fearing a loss of business. Democrats and consumer advocates have been pushing for the IRS to offer free online tax filing on its website, particularly for people with straightforward returns. Their core argument: Tax-preparation companies charge middle-income Americans for what advocates think should be a free public service. Read more

Paris is trying to steal the UK’s fintech crown - A growing number of startups are setting up in the city as the French government pushes to be at the forefront of Europe’s financial technology sector. Read more

Bank of America launches fintech accelerator program - The six-month program provides mentorship, networking opportunities and access to potential investors to Black, Hispanic-Latino, Native American and other entrepreneurs from underrepresented communities. The bank is offering the program, called Breakthrough Lab, at no cost. Participants are not expected or required to exchange equity with the bank, the firm said. Read more

G-7 finance ministers discuss crypto regulation Ahead of Japan summit next week - The Group of Seven (G-7) intergovernmental political forum has signaled its commitment to implementing the Financial Stability Board's (FSB) forthcoming norms for regulating crypto assets and the International Monetary Fund's (IMF) recommendations on central bank digital currencies. Read more

Surging large fines for organizations signal regulators’ changing approach - A recent report from Moody’s Analytics Grid has shed light on the changing landscape of regulatory fines across the globe, showing a dramatic increase in large fines for organizations in the past year. The study revealed that businesses faced large fines, defined as more than $10,000, at more than double the rate of small fines, which are classified as less than $10,000, which has helped boost investor interest in compliance tech. Read more

Buffett-backed Nubank reports record revenue on steady user growth - Brazil's Nubank on Monday reported record revenue for the first-quarter as the digital bank benefited from steady growth in users and higher average revenue per customer. Warren Buffett-backed Nubank has so far been insulated from the downturn in the global banking sector as consumers in its key domestic Latin American market continue to gravitate towards its credit cards and personal loans. Read more

Stripe expands access to its crypto onramp with a new hosted option - Web3 companies can now direct customers to a Stripe-hosted onramp to buy cryptocurrencies. Both embedded and Stripe-hosted onramps are now available to any interested Stripe user. The embeddable onramp is helpful for Web3 companies that want to fully customize the branding and customer experience, while the Stripe-hosted option provides an even easier way for users to get started. Read more

US Chamber of Commerce sides with Coinbase in clash with SEC - The U.S. Chamber of Commerce, one of the country's most influential business advocacy groups, is taking up the banner of digital asset critics of U.S. regulation and blasting the Securities and Exchange Commission's approach to ether, Coinbase, Kraken, and the broader digital asset industry. Read more

Select Financings

Aibidia - Helsinki based transfer pricing platform raised €13m in Series A funding led by DN Capital and FPV Ventures. Read more

Avenue One - New York based provider of real estate management platform for institutions raised $100m in growth funding led by WestCap. Read more

Axis - Cairo based mobile wallet and digital payments platform raised $8.25m in Seed funding led by Tiger Global, Sawari Ventures and Raba. Read more

Bolttech - Singapore based insurtech startup raised $196m in Series B funding led by Tokio Marine. Read more

Jenfi - Singapore based equity financing platform raised $6.6m in new funding led by Headline Asia. Read more

Jia - Los Angeles based blockchain SME financing firm for emerging markets raised $4.3m in Seed funding led by TCG Crypto. Read more

Mitiga Solutions - Barcelona based climate risk modeling startup raised $14.4m in Series A funding led by Kibo Ventures. Read more

Obie - Chicago based insurtech company focused on residential real estate investors raised $25.5m in Series B funding led by Battery Ventures. Read more

Percent - New York based credit marketplace raised $29.7m in Series B funding led by White Star Capital. Read more

River - New York based bitcoin financial services company raised $35m in Series B funding led by Kingsway Capital. Read more

Spiff - Salt Lake City based sales commission software maker raised $50m in Series C funding led by Salesforce Ventures. Read more

Vault - Canada based online banking platform for SMBs raised $5m in Seed funding led by Gradient Ventures and Fin Capital. Read more

Zip - San Francisco based B2B procurement fintech raised $100m in Series C funding led by Y Combinator. Read more


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