Launch Case Studies

Lenny Credit

Lenny Credit, Santa Monica, CA

Objective: Launch new alternative lender with strong foundation and no regulatory issues

Background/Opportunity

  • Lenny Credit came to us pre-launch as they were fine tuning the product design for a mobile-only lending app targeting millennials and college students with thin credit. They asked us to advise on the configuration of their operational stack and compliance platform. This forward thinking group needed a product design and operational system that would scale over time to support long-term growth while conforming to all compliance regulations.

Challenge/s

  • How to deploy effective and efficient account origination processes for a prospect audience with thin credit files, in addition to a funding and payment processing system that’s 100% mobile.   
  • How to meet compliance regulations, without allowing constraints to erode the integrity of a unique new product.  

Solution

  • Advised on the design and deployment of a secure, compliant automated underwriting and processing system that delivers origination decisions within 3 minutes.
  • Implemented optimal compliance stack after identifying best technologies and designing efficient and effective processes that meet all lending requirements and all digital information security requirements.  

Results

  • Booked 1,000+ consumer accounts in California within 3 weeks after launch.
  • Generated 40,000+ mobile app downloads since 2015.
  • Automated system has seamlessly originated accounts, transmitted funds, processed payments and securely transmitted sensitive customer data to credit reporting agencies without hiccups during launch and growth phases.
  • 2016 Tech.co - Start-up Of The Year finalist.

Testimonial

“Francesco Matteini and his team at InnReg are doing an outstanding job as our compliance gurus. It is like having an in-house regulatory department. They came in, listened, understood our needs, and built our compliance systems from the ground up. They make it easy for me to focus on launching my company and building my customer base because I know the regulatory issues are in safe hands. They are creative in their problem-solving approach. Their work is on-time and on-budget. I trust their input completely, and I highly recommend InnReg to any fintech company that wants outsourced compliance for all or part of their compliance function.”  

Joe Bayen - CEO & Founder at Lenny Credit

GoodApril

GoodApril, San Francisco, CA

Objective: Launch new online tax planning and advisory service

Background/Opportunity

  • GoodApril was a Techstars-backed program designed to automate tax planning for consumers. The service would aggregate financial data from third-party sources to forecast taxes due as well as identify tax savings opportunities as they emerged in real time. Their goal was to minimize tax payments for their clients, and provide a “no surprises” filing experience every April.

Challenge/s

  • How to ensure the product fulfills all applicable regulatory requirements when providing analysis of users’ tax situation.
  • How to ensure the analysis and strategies always adhere to constantly changing IRS rules.   

Solution

  • Leveraged 20+ years of compliance expertise to formulate the regulatory strategy.
  • Advised on the negotiation of vendor contracts with key strategic alliances.

Results

  • GoodApril was acquired by Intuit during launch. They are the only Techstars-backed company ever acquired prior to Demo Day.

Testimonial

“In his role as GoodApril's advisor, Francesco provided a decisive contribution in formulating our regulatory strategy. As we set out to disrupt the way consumers plan for their taxes, we had to figure out how the existing regulations (IRS, etc.) apply to our business model. Francesco guided us through the steps necessary to operate within the rules. His participation to the launch of our company was also instrumental in establishing our credibility with partners and investors.”  

Benny Joseph – CEO and Co-founder at GoodApril

Stockpile.png

Stockpile Investments, Palo Alto, CA

Objective: Launch a revolutionary new equity stock trading platform  

Background/Opportunity

  • Stockpile wanted to create a trading platform that was fun, easy and affordable. One that would support their mission to help new investors learn about stock trading in a low risk and low cost environment. Their goal was to make Wall Street accessible to a wider Main Street audience. The product design included online brokerage accounts, plus gifts of stocks delivered via gift cards and e-cards.

Challenge/s

  • How to build a platform targeting younger and even minor traders without raising regulatory red flags or generating negative press.
  • How to create a cost efficient operational system with a complex product design: custodial accounts for minors, shares of stock in the form of gift cards and e-cards, fractional trading, etc.

Solution

  • Designed and deployed a compliance platform that supported high speed and accurate transactions with a high level of information security.
  • Advised on the negotiation of profitable vendor contracts, including a multi-year clearing agreement.

Results

  • Stockpile raised $15 million in Series A funding after their successful launch and positive press.
  • Stock shares delivered via gift cards contributed an incremental $50 million in revenue from sales at national retail outlets like Toys R Us, Safeway and Kmart.
  • 2016 PayAwards – Winner in Product of the Year category.
  • 2016 PYMNTS.com – Silver in Most Disruptive Company category.
  • 2014 Finovate – Winner in Best of Show category.

Testimonial

“Francesco has been the driving force in establishing our compliance, legal and risk management functions. His experience and profound knowledge of the industry have been instrumental in protecting our brand during high-growth periods, as well as through challenging times. A clear communicator, Francesco has established strong relationships with industry regulators. In addition to his experience and knowledge of business, law and regulations, Francesco has an extremely organized approach to problem solving. I have been very happy to work with Francesco and look forward to doing so again in the future.”  

Michael Feser – President and COO at Stockpile Investments

SparkGift

SparkGift, San Francisco, CA

Objective: Launch a new service that makes it easy to give stocks and index funds as gifts

Background/Opportunity

  • SparkGift was a start-up supported by the Y Combinator incubator program. Their mission was to design a new service for people who wanted to give the unique gift of equity stocks, using an easy and fun platform. Their product strategy could be considered a retro fintech approach, because it hearkened back to the days when parents and grandparents gave bonds to children to seed their college fund.

Challenge/s

  • How to manage numerous compliance regulations spanning the brokerage/investment advisory environment to support stored-value gift cards and the trading environment to support online investing, including custodial accounts for minors.

Solution

  • Advised on the adoption of the most efficient regulatory structure to accommodate the desired business and revenue model, within a manageable set of regulatory requirements.

Results

  • SparkGift was acquired by Stockpile Investments in 2016 based on two key factors. Their successful product launch with substantial positive press. And their potential to become a viable competitor.

Dvdendo

Dvdendo, Miami, FL

Objective: Launch a micro-investing app designed to increase portfolio growth potential compared to conventional savings and investment accounts

Background/Opportunity

  • Dvdendo believes every single person would benefit from an investment approach that includes small, daily contributions. However, decades of experience as investment advisors had taught them this level of discipline is rare even with seasoned investors. The Dvdendo platform solves this problem by rounding up a client’s credit and debit card purchases to the next dollar, and then automatically depositing this “small change” into a passively managed investment account. It’s like putting saving and investing on auto-pilot.

Challenge/s

  • How to identify and address any potential regulatory compliance issues related to targeting international users.
  • How to identify the best vendors to support an international launch when the product is an innovative investment program in a regulated environment.

Solution

  • Conducted a comprehensive gap analysis. This process ensured the compliance program was implemented in accordance with all SEC requirements for a Registered Investment Advisor.
  • Addressed all compliance issues related to targeting and managing international accounts.
  • Sourced and introduced regulated vendors who could support international clients.

Results

  • Dvdendo was successfully launched in 2016 on a strong compliance foundation.
  • They recently closed their first round of VC funding.

Testimonial

“InnReg understands fintech, online brokers and robo-advisors like no other compliance consultants we approached. They keyed in immediately on all the potential regulatory issues that could affect our business when targeting international users. Their CEO Francesco Matteini has built a substantial network of third-party providers. He helped us evaluate and select the right vendors to meet our needs within our budget and timeline."

Matthew Meehan – Founder and President at Dvdendo

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