Rebalance Capital

New Concept Paper! Rebalance is excited to introduce the term "B2B2E", a distinct go-to-market motion for tech products distributed through businesses to serve their employees. Drawing on our experience as a trusted innovation partner for Human Resources and Financial Services leaders, we explain B2B2E distribution, its evolution, and monetization models, and we share critical success factors for founders building in this space. #B2B2E #HRTech #WorkforceTech

An immense pleasure discussing with colleagues “Beyond Financial Inclusion: The New Customer Base You May Not Have Thought Of.” Some key takeaways from the discussion: ⁃ Partnering with trusted intermediaries is critical to serving LMI customers: capitalizing on existing distribution enables firms to more profitably distribute higher quality financial services. ⁃ Regional banks and credit unions are now broad resource centers for their communities: they must understand consumers’ hierarchy of needs and identify complementary capabilities to address them. ⁃ A shift from wealth accumulation to holistic financial health: we’ve only recently seen dashboards aggregating bank accounts, credit cards, and credit scores, but are already seeing demand for broader financial health metrics and data sources, particularly from Gen Z. ⁃ Innovation in highly regulated financial services firms is more iterative than transformative: banks are focused on process evolution across onboarding, underwriting, and servicing, rather than wholesale self-disruption. ⁃ Baby boomers are more digitally native than we assume: we must dig into the data and design experiences accordingly.

I’m thrilled to share that I’ll be speaking at Finovate Fall 2024 alongside a fantastic lineup including Kelly Bryan, Munish Mohit Aggarwal, CFA, Paula Grieco, and Lauren Ashcraft. We'll be presenting an executive briefing on going Beyond Financial Inclusion: The New Customer Base You May Not Have Thought About on September 9th. Come join us and say hello! #Finovate #finance #technology #networking #upwardmobility CC: Rebalance Capital

Rebalance is excited to announce its recent investment in Upright Education, a tech-enabled bootcamp provider. Upright partners with regional and community colleges to offer in-work learners access to upskilling courses in high-demand digital-economy careers. Unlike traditional bootcamps, Upright is addressing the enormous, unmet needs of nearly 2,000 local colleges. After completing an Upright course, learners report an average salary increase of $29,000, a 62% raise from their prior roles. In partnering with Upright, Rebalance joins other leading workforce investors including Learn, JFFVentures, and the Strada Education Foundation. Congratulations to Benny Boas and the entire Upright team! #WorkforceTech #ImpactInvesting #Upskilling Dan Sommer, Lou Pugliese, David Berger

Acquisition alert! It's been quite the up-tempo quarter for Rebalance Capital portfolio company Summer - now adding its acquisition of Vault.co! Kudos to Will Sealy, Daniel Macklin, Ritu Tandon, and the whole Summer team for getting this competitive opportunity across the finish line. We recognize the immense potential in these two companies joining forces to empower employers to help address the student debt crisis - and welcome Heather Lowe and co to the team! It was a pleasure to support the team in this transaction, and partner with Matthew Risley at QED Investors and Robby Peters at SemperVirens Venture Capital . Looks like this 🚀is taking off. CC: Barr Even, Robert Torres, Robert Rush, Melody Koh at NextView Ventures, Adam Valkin and Alexander Chen at General Catalyst, Jake Yormak at Story Ventures #studentdebt #retirementmatching #tuitionassistance

What a fantastic time at Jobs for the Future (JFF) Horizons! The content was powerful and the breadth of stakeholders focused on workforce development present was inspiring. A few takeaways from the Rebalance Capital team: • Fostering Economic Mobility is a Two-Way Street: As investors, we focus on promoting upward mobility, but that isn’t the same as avoiding downward mobility. Raj Chetty highlighted that some demographic groups are actually downwardly mobile. Ensuring a secure floor and resiliency is equally important as closing the wealth gap. • Alternatives to the 4-Year Degree are Gaining Steam: Completion of non-degree credentials (40%) are nearly at parity with traditional college degrees (46%). However, regulatory challenges and employer recognition remain blockers to alternative education. • Increased Investment in Building the Green Workforce: Government and workforce development investors are driving resources toward access and training in green jobs, particularly as a means to building equity and sustainable earnings. There is a meaningful awareness gap in jobs outside of traditional green jobs like solar. • Public-Private Collaboration a Must to Reshape the Workforce: The government recognizes that its funding alone won’t result in reshaping the workforce of tomorrow. A critical piece of its agenda is sourcing partnerships between Employers and Public sector. • The Federal Government is Increasing Funding for State-Sponsored Job Programs: As 20% of workers are aged 65 and up, people are living and working longer than ever before and the Federal government is spending $5bn per year on workforce skill-building. Beyond addressing a workforce readiness risk, there is also a focus on onshoring jobs to promote national security through economic resiliency.   Great to see new friends and old in DC: Jessica Porten Hinkle, Laura McCoolidge Nguyen, Mike Hanagan, Yigal Kerszenbaum, Sabari Raja, Monica Pacheco, Mollie Dougherty, Mark Grovic, Joseph Watt, Mindi Chen, Ami Becker Aronson, Raj Date, Jackson Lefelar, Meredith Shields, Arti Srivastava, Shauntel Garvey, Patience Marime-Ball, Esq., Benny Boas, Jay Bozman. #WorkforceTech #HR #ImpactInvesting #FutureofWork

Welcome to Yael Kaufmann to the Rebalance Capital family! Yael joins us as a Venture Partner with a focus on WorkforceTech and Human Resources-facing startups. She brings over a decade of experience as a founder, investor and operator across workforce, education, fintech and impact investing, including most recently at unicorn startup Degreed. Yael was Co-founder & COO of Learn In and led its acquisition by Degreed, where she was Interim CFO, SVP Finance & Operations and Head of Partnerships. Yael began her career as an investor in pri­vate equity and was a VC, impact investor, and fintech entrepreneur before co-founding Learn In. Learn In has been recognized as a leader in the future of work for its innovative education benefits and talent academy platform and as a Best Workplace by Inc. Magazine. Yael, we and our startup founders are so fortunate to have you!

Rebalance is pleased to welcome Robert Rush, an MBA student at the Stanford Graduate School of Business, to the team in New York for the summer as an Impact Capital Managers (ICM) Mosaic Fellow! The ICM Mosaic Fellowship seeks to build a pipeline of diverse, skilled talent in the alternative investment industry. We are excited to continue learning with and from Rob as he continues the summer with us in New York!

Rebalance is pleased to welcome Robert Rush, an MBA student at the Stanford Graduate School of Business, to the team in New York for the summer as an Impact Capital Managers (ICM) Mosaic Fellow! The ICM Mosaic Fellowship seeks to build a pipeline of diverse, skilled talent in the alternative investment industry. We are excited to continue learning with and from Rob as he continues the summer with us in New York!

We're buzzing and inspired after last week’s Impact Capital Managers Spring Convening! It was great to engage with peer managers, Limited Partners, and government officials on topics core to our work at Rebalance Capital. Here are some of our key takeaways: • 𝗧𝗵𝗲 𝗳𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗳𝗿𝗲𝗲𝘇𝗲 𝗶𝗻 𝗶𝗺𝗽𝗮𝗰𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝘀 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝘁𝗼 𝘁𝗵𝗮𝘄: Allocators are working through backlogs following slow activity in recent years, but deployment into impact funds and companies is heating up again • 𝗚𝗿𝗼𝘄𝗶𝗻𝗴 𝗱𝗲𝗺𝗮𝗻𝗱 𝗳𝗼𝗿 𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗲𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀: NextGen asset owners are driving the increased interest in impact, but their focus areas are highly fragmented. That means “one size fits most” funds no longer fit many investors’ preferences, accelerating the rise of impact specialists with a thematic or sector focus • 𝗜𝗺𝗽𝗮𝗰𝘁 𝘁𝗿𝗮𝗰𝗸𝗶𝗻𝗴 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀 𝘁𝗼 𝗴𝗿𝗼𝘄: 80%+ of impact fund managers are now tracking impact outcomes - the minority have Limited Partners pay for this – and about a quarter of managers are using a third-party service to validate their tracking and methodologies • 𝗪𝗲 𝘀𝘁𝗶𝗹𝗹 𝗵𝗮𝘃𝗲 𝗮 𝗹𝗼𝗻𝗴 𝘄𝗮𝘆 𝘁𝗼 𝗴𝗼 𝗼𝗻 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆: Even within the impact investment community, only 25% of funds’ teams have greater than 50% representation from underrepresented groups. Even measurement is still weak on representation of groups such as Veterans, LGBTQ+ individuals, and individuals with a disability  • 𝗙𝗿𝗼𝗺 “𝗚𝗿𝗲𝗲𝗻𝘄𝗮𝘀𝗵𝗶𝗻𝗴” 𝘁𝗼 “𝗚𝗿𝗲𝗲𝗻𝗵𝘂𝘀𝗵𝗶𝗻𝗴”: with the unfortunate politicization of topics such as ESG and DEI, incentives have swung from trumpeting your impact work to doing it quietly in the background. But behind the volatility in the volume of press releases, the work being done by allocators and GPs is continuing at a steady pace Thank you to the Impact Capital Managers team for their leadership in our community and for organizing a fantastic event!