Medean

Mobile Platform For Financial Planning

Company Information

Website:

https://medean.com/

Sector:

Financial Services Software

Location:

Chicago, IL

Medean is a mobile app that takes users on a personal “journey” to help them improve their finances.

Unlike other platforms that only let users create a budget or track spending, Medean enables users to set financial goals — and then guides them through a step-by-step process on how to achieve them.

Along the way, users can “unlock” new badges and features of the app, and compare their progress with their peers.

Medean was created by co-founder and CEO Erik Skjodt. Skjodt has experience in finance and venture capital, including starting two previous startups. He is a member of Forbes' Young Entrepreneur Council and is a contributing author for Yahoo! Finance, MSN Money, and Forbes.

Skjodt started Medean to target "millennials," a demographic that struggles with personal finances.

60% of millennials have less than $1,000 saved. Their average debt is $28,000. As a result, 70% aren’t satisfied with the state of their finances, and 65% are interested in getting help.

Perhaps surprisingly, less than 15% of millennials actually set a budget or seek financial assistance.

This low number is due in part to the fact that many financial apps don’t provide a personalized experience. This can lead users to receive irrelevant advice — and then give up on the app quickly.

To understand this problem, consider an example of someone who earned an extra $800 in their most recent paycheck.

One app might tell the user to save that money, regardless of their outstanding debt; another might suggest they invest it, even if they already invest aggressively; and a third might urge them to make an extra payment on their loans, no matter what the rest of their budget looks like.

Any of these suggestions might be good advice — it just depends on the user.

Medean, in contrast, offers tailored advice by taking users on a financial journey. The journey starts with an assessment of where someone is in their financial life — for example, a recent grad with student debt, or a young professional aggressively investing for retirement.

Each user will be assigned a financial score and a step-by-step program to help them reach their goals. Users “advance” on their journey by completing these steps, and complete challenges like saving more money to improve their score.

Medean is offered as a “freemium” app.

The basic free version provides budgeting tools, a financial score, and peer-to-peer comparisons.

The “Plus” level includes these features, as well as personalized financial advice and progress reports. This version costs $6.99 per month.

The “Elite” level (slated for launch in Q4 2020) will include the option for a no-fee checking account, personalized debit card, and a fully-managed investment account. This will cost $9.99 per month.

In 2017, Medean raised $750,000 in a seed round, and launched its app later that year. It also completed the BMO Harris Bank Fintech Accelerator Program.

In 2018, the company partnered with two Fortune 500 banks. It also completed the CivicX accelerator, which is affiliated with Capital One.

Today, Medean has around 10,000 users, and has been featured in U.S. News and World Report, Yahoo! Finance, NBC News, and TechCrunch.

Medean averages nearly 15 sessions per month per user, more than 2x more than its competitors. This proves that users are engaged and stick with its platform.

With funds raised, Medean will increase its marketing efforts, hire additional staff, and aim to co-brand products like its upcoming checking accounts and debit cards.

It soon aims to reach 15,000 members, and surpass $100,000 in monthly recurring revenue.

Team Background

Matt Karazin - Co-Founder & CTO

Prior to starting Medean, Matt was Chief Technology Officer for Reveel, a mobile app that lets users explore new areas by revealing local attractions.

Before that, he was a senior consultant and technical project manager for Infor, a computer software company.

Early in his career, Matt was a software developer for SpotHero, a mobile app that helps people find parking in Chicago.

During his career, he was awarded a patent for an invention relating to mobile technology and geolocation. He earned a Bachelor’s degree in Computer Science from Indiana University.

Erik Skjodt - Co-Founder & CEO

Erik has nearly a decade’s worth of experience in finance.

He began his career working in corporate finance for Simon Property Group, one of the largest mall owners in the world. From there, he helped start Clear Scholar, a student engagement platform that raised $2 million in funding and was acquired in 2018.

In addition to his role with Medean, Erik is a member of Forbes’ Young Entrepreneurs Council, and is a contributing writer to Yahoo! Finance, Forbes, and U.S. News and World Report.

He earned a Bachelor’s degree in Sport Marketing and Management, and an MBA from Indiana University.

Reed Semcken - Head of Marketing

Reed joined Medean in September 2019.

He's currently studying at the University of Chicago School of Business, where he expects to earn his MBA in 2020.

He began his career at Microsoft, where he spent four years as a finance manager in the company’s Revenue Division.

Reed earned a Bachelor’s degree in Business Administration from the University of Southern California.

Co-Investors

Raising
$1 million
Committed
$213.7K (21%)
Current Valuation
$6 million Cap / 0% Discount
Min. Investment
$1000
Deal Type
Title III
(For all investors)
Offering Type
Convertible Debt
Finance History
  • $750K
    2017-02-01
    Unknown
Notable Investors
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