Fintech company reaches $625M in assets, bringing tax-efficient diversification strategies to mainstream investors with concentrated stock positions
The wealth management industry has long reserved its most sophisticated tools for the ultra-wealthy. For the growing number of investors with concentrated stock positions, often the result of successful equity compensation or investment gains, the traditional options remained limited: hold and bear concentrated risk, or sell and face significant capital gains taxes. Exchange funds offered a third path, but these tax-efficient diversification tools required million-dollar minimums and came with prohibitive fees. Cache is changing that equation.
Today, the company announced it has raised $12.5 million in Series A funding. The round was led by Bill Trenchard at First Round Capital, with participation from solo investors from across technology and finance.
The funding comes as Cache has demonstrated exceptional market traction, surpassing $625 million in total assets just over a year since launch, while approaching profitability.
“This is one of those rare cases where the team, timing, and market opportunity align perfectly,” said Bill Trenchard, Partner at First Round Capital. “Cache is solving a real problem, with clarity and urgency.”
Addressing a $350 Billion Market Reality
Cache addresses a fundamental challenge that has become increasingly common in today’s economy. Companies distribute over $350 billion in stock-based compensation annually, and for employees who have held that stock through a decade of growth, the result is often a portfolio with one name comprising 70 to 90 percent of their net worth.
“When I started Cache, I wasn’t trying to build a company that sounded like a financial institution,” said Srikanth Narayan, founder and CEO of Cache. “I just wanted to solve a problem I was facing myself, and that is what to do with a lopsided portfolio full of tech stock that had gone up a lot, but came with a huge tax bill if I tried to diversify. That problem wasn’t mine alone. It turns out thousands of others were in the same spot.”
Cache’s modern exchange funds allow investors to swap concentrated stock positions for diversified portfolios tracking major indices like the Nasdaq-100 and S&P 500, while deferring capital gains taxes until they choose to sell. The platform requires just $100,000 minimums compared to traditional exchange funds’ million-dollar requirements, and charges competitive fees of 0.4-0.95% versus the 1.5-2.25% typical of legacy providers.
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Strong Performance and Growing Client Base
Since launching in March 2024, Cache has attracted a diverse client base, including public company executives, early startup employees, long-term investors, and over 400 registered wealth management firms. The platform has delivered strong results across multiple dimensions:
- Cache has surpassed $625 million in platform assets in just over a year.
- Over $600 million of assets under management within Cache Exchange Funds.
- Average investment per investor exceeds $900,000
- Average capital gains deferred per investor is above $750,000
“Cache gave me a way to protect my portfolio and diversify without taking a tax hit. It’s rare to find a product that’s both powerful and simple,” said Joel Meek, former VP at Reddit.
Expanding Team and Product Suite
To meet growing demand, Cache has been expanding its team with veterans from category-defining companies. Aaron White, former Chief Growth Officer at Adero Partners, now leads Investor Solutions at Cache. Paul Smith, who led design at Opendoor and Uber, heads the product design team. The company has also assembled a group of advisors with deep finance experience, including Peter Crawford (CFO at Schwab) and Tim Kochis, who pioneered the RIA movement.
On the product side, Cache has expanded beyond its original Nasdaq-100 focused exchange fund to offer a comprehensive suite of benchmarks. The company recently launched S&P 500 and S&P 500 Growth benchmarked exchange funds, with new S&P 500 funds beginning investor onboarding starting July 1st.
Powered by Cache’s proprietary Index Sync innovation, the platform now offers greater capacity for in-demand stocks, tighter tracking to benchmarks, faster diversification with bi-weekly onboarding, and lower fees than traditional exchange funds.
“Cache is bringing a sophisticated, tax-efficient strategy to investors who never had access before. It’s a big deal,” said Wesley Gray, Founder and CEO at Alpha Architect. Financial advisors have also embraced the platform as a solution for their high-net-worth clients with concentrated positions.
Built for Scale and Compliance
Cache operates as an SEC-registered broker-dealer and Investment Advisor, with client assets held at institutional custodians, including BNY Mellon. The platform provides SIPC protection up to $500,000 per account, plus additional private insurance coverage.
Positioned for Continued Expansion
With Series A funding, Cache plans to expand its mission to become the go-to platform for managing concentrated stock positions across all investor types, from employees holding RSUs to founders with legacy shares, family offices managing multi-generational wealth, and financial advisors serving high-net-worth clients.
The addressable market continues to expand as equity compensation becomes more prevalent across industries and asset values appreciate. Cache‘s approach makes sophisticated wealth management strategies accessible to the investors who need them most—those whose success has created the very concentration challenge the platform solves.
Source: Businesswire