InvestCloud Inc., a global FinTech firm, has announced Efficient Tax as the first FinTech startup to take residence at the InvestCloud Innovation Center (based in Los Angeles). Efficient Tax, an Anchorage, Alaska-based startup, will use its time at the Innovation Center and leverage InvestCloud’s Programs Writing Programs (PWP) technology to further develop its Portfolio Optimizer platform and integrate it into the InvestCloud App Store.
The InvestCloud Innovation Center is a financial technology accelerator and incubator. It allows startup technology businesses and financial institutions alike to undertake “residences” that accelerate the development of new digital modular apps through access to InvestCloud’s full technology platform, working under the guidance of a team of InvestCloud mentors.
THE EFFICIENT TAX MISSION
While the traditional industry approach to managing taxable portfolios is to minimize taxes in a year, Efficient Tax instead allows investors to realize gains and losses to achieve higher, long-term after-tax wealth. The company’s mission is to help investors make better decisions in managing their portfolios. Its flagship product, The Efficient Tax Portfolio Optimizer, is a capital efficiency decision engine that can help managers grow their business by focusing on growing their clients’ after-tax spendable wealth. Both InvestCloud and Efficient Tax share a guiding principle to empower investors and managers with the best information to enable better decisions.
David Gottstein, CEO at Efficient Tax, said: “The way the financial industry has managed taxable portfolios has not changed for more than two decades. Current practices no longer reflect the most efficient way of maximizing after-tax wealth. Now is the time – with the maturity and growth of the Fintech market – to adopt innovative technologies to help financial managers maximize their clients’ after-tax wealth, and simultaneously grow their own businesses. This is where Efficient Tax comes in. We leverage our proprietary technology to provide a fundamentally more precise and effective way to maximize long-term after-tax wealth across entire portfolios.”
Adds Gottstein: “The purpose of our time at the InvestCloud Los Angeles Innovation Center will be to continue the development of our patented technology, and on-board it onto the InvestCloud digital platform. We are delighted to partner with a company that shares the same values as we do, and is dedicated to transforming the way the investment industry works.”
The Efficient Tax Portfolio Optimizer will become available for InvestCloud clients to download through the InvestCloud App Store as a standalone function or as part of its wider digital platform functionalities.
CHALLENGING INDUSTRY NORMS
Yaela Shamberg, co-founder and Chief Product Officer at InvestCloud, said: “Efficient Tax is exactly the type of FinTech startup the InvestCloud Innovation Center is built for. David and his team are challenging the industry norms and designing better ways of working for both investment managers and investors. This is something close to our heart – InvestCloud was born out of a belief in the power of innovation and invention. We look forward to working with Efficient Tax and many more FinTech startups to bring fresh thinking and digital transformation to the industry.”
Efficient Tax joins several InvestCloud institutional clients already in residence or committed to residences in the Los Angeles Innovation Center, which was announced in March 2017 and opened its doors for business on June 1.
In June, InvestCloud also announced that it is to launch another Innovation Center at its European headquarters in Soho, London.
ABOUT INVESTCLOUD INC.
Headquartered in Los Angeles with a global presence, InvestCloud develops financial digital solutions, pre-integrated into the cloud. InvestCloud is committed to empowering investors and managers through its unique digital platform, and to creating beautifully designed client experiences and intuitive operations solutions using an ever-expanding library of digital modular apps. They produce products for individual investors and institutions alike, assembled on-demand to meet clients’ specific needs. Today the InvestCloud platform supports over $1.7 trillion of assets across 670 diverse clients – from wealth managers, institutional investors & institutional asset managers to family offices, asset services companies, financial platforms and banks. For more information, visit www.investcloud.com.