The Future of Onramp Invest

Onramp Invest

March 7th, 2022

Last week was extraordinarily difficult at Onramp. There is no way around that. Tyrone Ross stepped down as CEO, and the financial services industry responded. Nearly every trade publication wrote about it and asked us for comment. Our stance will always be that we are grateful for the time he spent on us, with us, and for us. Full stop.

Even more difficult were the immediate decisions that we believe needed to be made in pursuit of the long-term vision of Onramp. Our company exists to provide financial advisors with the education, access, and tools that they need to solve the operational, regulatory, and compliance hurdles that come with offering cryptoasset services to their clients. That goal is no easy feat to accomplish, especially when scaling at a rapid pace, and unfortunately, we created unintended consequences in the process.

To put it plainly, our revenue hit new highs every month. However, our burn rate was too large to justify without mounting a significant capital raise. In light of the macro picture, investors want to see more before we can raise the kind of capital required to justify such a burn. Therefore, we made the painful decision to let many great people go at no fault of their own. If you are a business owner, you can understand that this was a decision we never wanted to make. These folks are talented and contributed to where we are today, and we have no doubt they will quickly find a new opportunity very soon (if you are a financial services or technology company that is hiring, let us know).

There are many phases of a technology startup. What seems like countless books have been written on the subject. Students at universities enroll in graduate classes in search of the proverbial silver bullet on how to build a unicorn, and the honest answer is that while many paths have been taken, no one knows. Survivorship bias forces us to study the many successes while hiding the overwhelming majority of failures along the way. Hiring strong and early has worked for some, while it has come at a cost for others. For us, it came at a cost, and we felt there was no other path forward towards sustainability than to make hard decisions of aggressive change.

Our company has always been backed by investors. We knew from the onset that we had a large vision that needed time to be built, and we could not do it without the partnership of outside capital. We are stewards of their investment in us. While our public perception is injured, investor interest is up for the highlighted reasons above. Our revenue is compounding, our burn rate is much lower, our team is refined and focused, our product offering is at the best place it has ever been, our future opportunities remain once in a lifetime, and our investor’s commitment to us remains steadfast. Furthermore, it is important to note that while we have partnered with individual investors as well as institutions such as SoftBank, Coinbase, Wisdomtree, and Galaxy Digital, our parent company, Reality Shares, is well-capitalized and in a position to support Onramp if necessary.

What’s next? We keep moving forward. Not despite the incredibly difficult decisions of last week and the wonderful people they impacted, but in honor of them.

This week and beyond, we will be highlighting the capabilities of our platform, starting with the first-of-its-kind crypto model portfolios. In addition, we will show you how the ability for advisors to view their client’s outside wallets has made a tremendous impact on the value generated during the financial, estate, and tax planning process. Further, we can’t wait to roll out our newly created and robust cryptoasset practice management playbook (built on Notion for easy navigation).

Our product roadmap remains dedicated to reinventing what a useful integration is, and we are excited about the current and upcoming rollouts with folks like Riskalyze, Redtail, Wealthbox, Advyzon, Orion, and more. Finally, we want to highlight the amazing support our team provides firms like Ritholtz Wealth Management, who have written about their experience with us here and here.

To summarize, last week was incredibly challenging, the durability of our company is now much stronger, and we are shifting our focus to highlight the development of our product and support.

Thank you to all who have supported us in our journey. We appreciate you!