|1||1st Black-Owned SEC-registered hybrid (human & robo) advisor in the nation.|
|2||1st investment platform focusing on the unique investment and financial planning needs of people of color.|
|3||1st automated platform to focus on and build a business model around closing the racial wealth gap with human Certified Financial Planners.|
|4||Over 7,500+ people on email list with a combined 100k+ organic social media following.|
|5||2019 Beta Launch Stats: $3,330 10 YR-Projected Lifetime Value and 98% monthly paid user retention.|
|6||An experienced leadership team and advisory board with multiple business exits experience|
The First Black-Owned Hybrid (Robo & Human) Advisor & Wealth Building Platform In the Country
Freeman Capital makes wealth-building easier while focusing on the 48+ million people of color who are ignored by the traditional wealth management industry. While other companies focus on those who are already wealthy, we focus on helping everyday people build wealth.
Here is the reality, the needs of people of color are different! Here is just 1 of the many reason:
Therefore, we can’t use the traditional models that weren’t built for the situations and challenges that people of color face. We have to be aggressive, assertive and deliberate to help us build wealth early and often! We at Freeman Capital, look to deeply understand the health, physiological and financial needs that are unique to people of color.
“The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.” ― Malcolm Gladwell, The Tipping Point: How Little Things Can Make a Big Difference.
US National Library of Medicine, National Institute of Health, study on Non-insulin-dependent diabetes mellitus in minorities in United States: https://www.ncbi.nlm.nih.gov/pubmed/8686981
We believe that the incomes within black and brown communities will continue to increase. One example of the increase is within African-American households, which has outpaced that of non-Hispanic Whites at every annual household income level above $60,000. African American households with incomes of over $200,000 increased by 138% compared to the total population increase of 74%.
We also believe that a major wealth transfer will occur in the near future for people of color. Lastly, we believe that a shift must occur within our communities to translate the higher incomes into higher net worth.
Freeman Capital is the first wealth management firm focused on black and brown retail customers and their unique needs to ensure that our users will be able to not just build but pass along generational wealth for their families.
Through our technology platform, we not only educate, but provide automated and human financial advice with user-specific wealth roadmaps with accountability. We focus on helping people develop wealth-building habits with engineered behavioral science logic that taps into a user’s needs and helps them reach their goals.
Advancing incomes. African-American income growth rates outpaced that
of non-Hispanic Whites at every annual household income level above$60,000. The largest increase for African-American households occurred inthe number of households earning over $200,000, with an increase of 138%,compared to a total population increase of 74%. Nielsen Sept 2015 Study - African American Consumer Untold Story
The wealth gap is growing and especially hurting women & people of color. People that don’t fit inside neat little boxes are often cast aside.
In order to make a real impact, we have to work with people one-on-one to grow and build their wealth.
According to research from the Haas School of Business at Berkley, 90 percent of millennials say they would switch brand allegiance to support an issue they care about. Moreover, a 2018 study from the publicity firm, Edelman, showed that two-thirds of consumers make purchases that align with their values.
Source: Forbes / Statista
Freeman Capital is not jumping on a trend. We are the vehicle that will drive disruption. The change it will cause will be an inconvenience to the competition and an opportunity for millions of Americans.
There are many subgroups within black and brown populations and currently, most financial firms treat all melanated people like they are the same. We spent the time and did the research and understand the opportunity on how to capitalize on it.
For example, within the African Diaspora, many firms lump all black people as the same, but we see the truth:
For example, by understanding, there are cultural differences in how you speak to 2nd generation Nigerian-Americans vs. African-Americans. This micro-niche strategy allows us to maximize our content strategies, minimize our costs and increase our conversions.
This micro-niche strategy is applicable to not just those from the African diaspora but those of Latinx and Asian communities.
By 2053, the Black net worth number is projected to reach zero and for Latinos, zero by 2070. But, the incomes of those same groups is growing at an unprecedented rate. The challenge is converting income into wealth.
The conversion of income into wealth is the complete focus of Freeman Capital. We are doing this not only to stop millions of black and brown Americans from falling out of the middle class but also because people of color will become the majority of the US population.
Freeman Capital is here to shift the culture into wealth building.
To find the right customer base, we conducted a nationwide research study of consumers to understand gaps in the market.
Almost 4,000 phone calls, emails, and focus groups were conducted to understand the demographics.
As a result of this work, we now have a sweet spot of people that truly resonate with the services we are offering:
The customer experience is our number one priority. For us, it’s not just about automating investment strategies. Every customer touchpoint from account opening to providing continuing education is carefully engineered. As soon as someone signs up, they embark on a journey of wealth building by way of guidance through their financial planner.
Your contribution will enable our growth to continue on the upward trend and increase the rate of adoption; driving our product positioning and differentiation strategy to new levels.
A.I. Money Management Assistant
It is not enough to help people manage their money after the fact. Nia is our predictive money management assistant designed to guide our customers as they spend in their daily life. Our users will set a goal and Nia will monitor and suggest spending habits to help guide our customers in making better financial decisions.
With your help, we can invest in Nia faster and help our users build their wealth with smart decisions based off of machine learning and predictive spending.
While other companies ignore our target audience, we aim to attract them.
A continuation of our efforts to differentiate our offering is projected to activate 11,000 paying customers by the end of 2020.
Our company reduces the barrier to entry and lowers investing costs through artificial intelligence supplemented by human expertise of Certified Financial Planners.
90 percent of respondents receiving financial advice from a professional reported paying < $3,000 per year.
According to an SEC research study, 90 percent of respondents receiving financial advice from a professional reported paying < $3,000 per year. With Freeman, we have plans to make financial planning available for virtually anyone.
Our fees are clear and available. This helps our customers know exactly when and how much they are paying and they always stay in control.
Our company reduces the barrier to entry and lowers investing costs through artificial intelligence and supplemented by human expertise, which in turn allows everyday people to invest as little as $1 to jumpstart their portfolio.
Striking while the iron is hot
Asset growth is projected to near 40% in 2020 for robo-advisor technology platforms like Freeman Capital.
According to Deloitte, the assets under management trend is projected to skyrocket by 2025. With a projected $16 trillion dollars in assets under management by A.I led platforms.
FinancialPlanning.com reports that 60% of Americans expect to use a robo advisor by 2025.
The disparity was found within our cohorts of people of color. The majority of those who were surveyed had not been exposed to or using wealth-building tools.
This means that although the investing and robo-advisory market is poised to take off, currently it is projected to do so without people of color. Freeman Capital aims to solve this problem and make wealth-building more inclusive for all.
Our goal is to capitalize on the tremendous growth potential with the help of our industry-led expert marketing team.
Data & Analytics Drive Us
We are surgical when it comes to marketing spend. Building our brand and tailoring content involves investing time in Google Analytics visitor data, behavior and the passion that drives their lifestyle.
The audience metrics gives us a story of their passions and aspirations. These two insights helps us effectively communicate with our audience and efficiently spend on new customer acquisition costs.
We analyze human behavior and combine it with our investment technology platform to create powerful customer experiences that guide them towards building wealth.
The image below is just one of our 4,000 person research cohorts that we used to build the company.
Our research not only helps us from a design perspective, but also informs the services we offer. As a core tenant for Freeman Capital, the evidence presented by our research also guides product offerings; keeping costs down and demand high.
We are creating a community based on our movement to close the wealth gap. Our social media channels already have a great number of followers. But most importantly, our followers are engaging with our content.
According to a Hubspot report, 71% of consumers are more likely to make purchases based on social media referrals.
We have 4 main online strategies, which are listed below as well as their effectiveness from Jan 2019 to February 2020. We have a list of over 30 additional strategies that we continue to test, and when proven reliable, will scale up to achieve our growth goals.
It’s our passion to help others build a wealthy life, but in a faster, easier, and less stressful way.
This capital raised is for The Freeman Capital Management Holding, Inc. ("Freeman Capital". All items mentioned are focused on the holding company. Freeman Capital Advisors, LLC, is wholly owned by The Freeman Capital Management Holding, Inc. The Freeman Capital Management Holdings, Inc. also owns The Community by Freman Capital and will own future products (like Nia the AI Money Manager Assistant).
The above-mentioned individuals are equity holders and advisers of The Freeman Capital Management Holding Inc, and are not affiliated with the investment advisory subsidiary "Freeman Capital Advisors, LLC," and as such, are not investment advisor representatives., employees, owners or officers of Freeman Capital Advisors, LLC.
This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice.
Freeman Capital has financial statements ending December 31 2019. Our cash in hand is $12,000, as of February 2020. Over the three months prior, revenues averaged $1,047/month, cost of goods sold has averaged $7,665/month, and operational expenses have averaged $7,665/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Freeman Capital makes wealth-building easy by focusing on the over 48 million people of color who are ignored by the traditional wealth management industry. We focus on helping by educating users but providing automated and human financial advice. User-specific wealth roadmaps and accountability checkpoints help the user in a human way. Our focus on helping people develop wealth building habits are engineered behavioral science logic. Tapping into their needs and reach their goals.
In 5 years, we aim to be on our way to becoming the foremost leader in wealth management service to retail customers with heavy market penetration in the African American and Latino markets. We aim to have over 1,000,000 members on our platform who we’ve helped to change the generation wealth patterns of families across the country.
The Freeman Capital Management Holding, Inc. was incorporated in the State of Delaware in July 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in July 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $392,307 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
The Freeman Capital Management Holding, Inc. cash in hand is $25,971.19, as of February 2020. Over the last three months, revenues have averaged $1,047/month, cost of goods sold has averaged $7,665/month, and operational expenses have averaged $7,665/month, for an average burn rate of $14,283 per month. Our intent is to be profitable in 5 months.
We have not had any material changes or trends in our finances or operations since the date of our financials.
We anticipate our revenues to grow significantly and our expenses will grow fractionally. Our goal is to use these crowdfunding funds to help us reach $10,000 in monthly recurring revenue (MRR). Then once we reach that goal as long as our churn rate remains low and a higher customer lifetime value, we will use the MRR based lenders to borrow money to use for marketing. This will allow us to get a "virtual line of credit" that can be used for customer acquisition based on our growing MRR. We hope (but not guarantee) to reach $20,000/month in revenues and $17,000/month in expenses in six months time. If need be, we rely on additional capital from angel investors in our network.
We are relying on our custodian (broker who holds the customer funds) to hold the funds and execute trades as we direct. We currently have only one broker/custodian and therefore if we needed to make a change, there would be an impact to our operations.
Our customer acquisition costs were based on smaller tests and assumptions. If the costs to acquire a customer increases, that will impact our ability to succeed.
We have a number of competitors in this space, none that are direct competitors but they could pivot or change their business model and provide a similar service.
Calvin does have another income sources that allows him to work on Freeman and keep the company's monthly expenses low. Although, this keeps the expenses low it does pull time time away from Freeman Capital. Once Freeman is able to pay for Calvin's salary, he will dedicate 100% of his time to the business.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Bruce Maxwell is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case. Although, this keeps the expenses low it does pull time time away from Freeman Capital. Once Freeman is able to pay for Bruce's salary, he will dedicate 100% of his time to the business.
Daryl Shaw is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case. Although, this keeps the expenses low it does pull time time away from Freeman Capital. Once Freeman is able to pay for Daryl's salary, he will dedicate 100% of his time to the business.
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