The path to profitability

July 31, 2023

Another quarter is in the books heading into our Q2 board meeting this week and we have a lot to be proud of despite the headwinds facing the business, from delays in broker dealer approval to challenges with getting more institutional capital on board. Despite all this, we managed to top revenue forecasts after backing out the broker dealer servicing fees. The acceleration from here, though, becomes all the more challenging.

Fortunately we have some help coming our way. Our venture debt is about to be topped up, pushing out our runway even further. The credit facility is being activated within the next few days, which will free up significant capital from our investors into these new offerings while being able to generate additional revenue along the way. Conversations with family offices and RIAs are starting to pan out, with more bespoke blended notes being set up with each passing week. Our market is an AUM game at the end of the day - the more investor capital we have, the more compelling a case we can present to prospective underwriters and their borrowers, and we're finally starting to feel the tailwinds from the work we've been putting in.

As we prepared the materials for this board meeting, we mapped out a clear and realistic path to profitability that ensures we can control our own destiny, even just with our marketplace. In our next all-hands, we'll outline what this trajectory looks like, how we get there, and what KPIs will make it possible. 

13 months is what it'll take with a concerted effort to deploy the credit facility into the right deals, closing a handful of RIAs and family offices, and continuing to push the accredited investor acquisition and conversion. Just 13 months until we can control our own future - it's all more than achievable, we got this 💪