A Columbus startup that makes it easy to pool investments in real estate, startups or other equities has raised $3 million – including funds from one group that used the software for their stake.
Tribevest LLC, which grew through the pandemic to 1,000 "tribes" investing through the platform, plans to use the infusion to grow to 8,000, co-founder and CEO Travis Smith said. The eight-person company will be hiring in all business areas.
"This is a great place to scale a company like ours," Smith said. "The biggest thing missing in Columbus for startups is capital. We feel confident and comfortable with the relationships we’ve made … that we can scale it here without having to move the business."
Investors in the seed round, which does not have a lead, include I2BF Global Ventures, Mucker Capital, Gaingels, Vibe Capital and Ryan Leslie, who founded SuperPhone, a text marketing tool. The startup earlier had gone through a business accelerator run by Los Angeles-based Mucker.
"We’re always coming together with people who have similar missions to empower people to build wealth and find individual freedom," said Smith, who traveled to San Francisco and New York City to raise the funds.
Leslie, a Grammy-nominated hip hop artist and producer, joined the round as part of a Tribevest "tribe" with Rashad Bilal and Troy Millings, hosts of the podcast Earn Your Leisure.
"Making more millionaires is more important than making more millions,” Leslie said in a news release. "I view Tribevest as a platform that can level the playing field and help democratize capital."
An Ohio State University graduate, Smith had moved to New York City for a wealth management job and moved back to Ohio when he was "saved by software," and for 20 years worked in sales and management roles at a number of tech companies.
The startup's mission originated a decade ago, when Smith's extended family was forced to sell a vacation cottage that his parents, aunts and uncles had owned.
"We realized we were not doing as well as we thought," he said. "We couldn't keep this thing in the family."
Smith, his brother and two cousins started regular contributions to a savings account, until they built up enough to start investing in real estate. Over time, they made returns – and yes, the family again owns a cottage that is a part-time rental when they're not using it.
In 2018, Smith and two co-founders – CTO Zach Bowers and COO Josh Wilson – turned lessons the group learned into software. Bowers had founded a subscription software business and an app, according to his LinkedIn profile. Wilson has more than two decades in management at software and IT companies.
Tribevest automates steps that used to take weeks, such as forming an LLC, opening bank accounts and keeping up with regulatory compliance. Members put their ground rules in writing, such as how shares are divided or how one member can buy out of the group later, to prevent future drama.
"We reverse-engineered how the wealthy have been group investing for centuries, and we streamlined it through transparent technology," Smith said.
Until last year, Smith said, the startup had to explain why group investing could be beneficial. That all changed in the pandemic. A $500,000 note in early 2021 helped Tribevest grow its customer base by 12 times.
"People were at home thinking about what’s important for them, and they wanted to do things with the people they care about most," Smith said. "We won't stop until collaborative investing is commonplace for all."
Tribevest does not charge transaction fees or take a cut of gains. Instead it’s a strict software subscription: $250 to cover the administrative and legal costs of forming a new tribe and a $29 monthly for the software. The company rents office space at Rev1 Ventures, but the firm is not an investor.
About half of the startup's clients invest in real estate, including multifamily housing and vacation properties. Nearly half invest in small businesses, and a quarter in stocks. Most groups have more than one type of investment.
"Investing as a group previously took hiring expensive lawyers, navigating antiquated banking procedures, and overcoming so many question marks," Ilya Golubovich, I2BF managing partner, said in a release. "We’re incredibly impressed by Travis and his team."
